1. T/F: The future value of an annuity calculation is used to calculate mortgage payments?
2. Which type of mortgage best allows a borrower to access the equity in their house? a) subprime b) option arm c) jumbo mortgage d) reverse annuity mortgage
3. What is the payment for a 30 year mortgage for $180000 with monthly payments and an interest rate of 8%? a) 1332.41 b) 553.32 c) 120.78 d) 1320.78 e) 1200.00
4. How much would it cost to pay 2 points on a $200000 mortgage? a) 1000.00 b) 4000.00 c) 400000.00
5. what percentage will a bank use as the upper limit for debt payments (as a percentage gross income) including mortgage? a) 43% b) 33% c) 28% d) 48%
6. T/F A mortgage over 15 years has a lower monthly payment than a 30 year mortgage?