1. The mortgage constant is
1) The inverse of the present value of an annuity factor.
2) The inverse of the sinking fund factor.
3) The inverse of the future value of an annuity factor.
4) The inverse of the installment to amortize one factor.
2. Which of the following represents a pledge of two or more parcels of land to secure a single loan?
1) Purchase-money mortgage
2) Monopod mortgage
3) Deed of trust
4) Blanket mortgage
3. Financing costs such as discount points increase the effective cost of borrowing by raising the monthly debt service payments.
1) True
2) False