1. Suppose you have taken out a $200,000 fully-amortizing fixed rate mortgage loan that has a term of 15 years and an interest rate of 4.25%. In month 2 of the mortgage, how much of the monthly mortgage payment does the principal repayment portion consist of?
A. $705.51
B. $708.33
C. $796.22
D. $799.04
2. Suppose you have taken out a $125,000 fully-amortizing fixed rate mortgage loan that has a term of 15 years and an interest rate of 6%. After your first mortgage payment, how much of the original loan balance is remaining?
A. $1,054.82
B. $120,603.78
C. $124,570.18
D. $124,875.56
3. Assume you have taken out a partially amortizing loan for $325,000 that has a term of 7 years, but amortizes over 30 years. Calculate the balloon payment at maturity (Year 7) if the interest rate on this loan is 4.5%.
A. $1,646.73
B. $118,468.21
C. $282,835.42
D. $324,572.02
4. Let’s assume that you have just taken out a mortgage loan for $200,000 with an origination fee of 2 points due upfront. The mortgage term is 30 years and the mortgage rate is fixed at 4%. What is the cost of the origination fee in dollar terms?
A. $400.00
B. $954.83
C. $4000.00
D. $4954.83