Saturday, December 14, 2013

Diane Ray - Chapter 13 M/C and T/F

Chapter 13 MC/TF

1.         A mortgage product designed to meet the needs of the elderly with an annuity or line of credit is called what? 

            a.         Federal Housing Administration (FHA) 

            b.         Adjustable rate mortgage (ARM)

            c.         Reverse annuity mortgage (RAM)

            d.         None of the above    

 2.         Once points and fees are calculated, the Annual Percentage Rate (APR) is what the lender       measures as their bottom line return.

            a.         True

            b.         False

3.         An advantage of discount points for the lender is to increase their effective rate of return.

a. True
b. False

4.         A Reverse annuity mortgage product is overseen by the Federal Housing Administration

            a.         True

            b.         False

5.         What is the expression used for a mortgage type where the monthly payments pays only        the interest on the loan.

            a.         “Annuity Due Payment”

            b.         “Graduated Payment”

            c.         “Interest Only Payment”

            d.         “Balloon Payment”

 Answers:         1) c  , 2) a  , 3) a  , 4) a , 5) c

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