1. You would be more likely to borrow through an ARM if you believed that interest rates were going to increase.
True
False
2. The FHA guarantees mortgage loans to (mostly) lower income households.
True
False
3. A MBS security issued by FNMA would have a slightly lower yield than a government bond with the same average maturity.
True
False
4. Because of the uncertainty in future cash flows, ARM rates are generally higher than fixed-rate mortgage rates for the same maturity.
True
False
5. Your current income is an important component of your FICO score.
True
False