1.\u00a0(TCO 5) The market value of a loan is ________\t2.\u00a0(TCO 5) Which of the following is TRUE regarding the incremental cost of borrowing?\t3.\u00a0(TCO 5) A house is for sale for $250,000. You have a choice of two 20-year mortgage loans with monthly payments: (1) if you make a down payment of $25,000, you can obtain a loan with a 7% rate of interest or (2) if you make a down payment of $50,000, you can obtain a loan with a 5% rate of interest. What is the effective annual rate of interest on the additional $25,000 borrowed on the first loan?\t4.\u00a0(TCO 5) A borrower secured a 30 year, $150,000 loan at 8% with monthly payments. Fifteen years later, an investor wants to purchase the loan from the lender. If market interest rates are 5%, what would the investor be willing to pay for the loan?\t5.\u00a0(TCO 5) Loan refinancing decisions must consider ________.\t6.\u00a0(TCO 5) A borrower made a mortgage loan 7 years ago for $160,000 at 10.25% interest for 30 years. The loan balance is now $151,806.62 and rates for this amount are currently 9.0% for 23 years. Origination fees and closing costs are $4,500 and closing costs are not financed by the lender. What is the effective cost of refinancing?\t7.\u00a0(TCO 5) A loan was made 10 years ago for $140,000 at 10.5% for a 30 year term. Rates are currently 8%. What is the market value of the loan?\t8.\u00a0(TCO 5) A home equity loan is a loan in which a residential property owner can\t9.\u00a0(TCO 6) A conforming loan\t10.\u00a0(TCO 6) A jumbo loan ________.\t11.\u00a0(TCO 6) Which of the following groups customarily does NOT attend real estate closing?\t12.\u00a0(TCO 6) RESPA requires lenders to disclose to buyers a good faith estimate of certain closing costs within ________.\t13.\u00a0(TCO 6) A typical RESPA closing statement contains which of the following characteristics?\t14.\u00a0(TCO 6) The calculated APR represents the ________.\t15.\u00a0(TCO 6) There are times when a borrower may be able to receive a lower interest rate on a mortgage note in exchange for a ________.<\/p>\n","protected":false},"excerpt":{"rendered":"
1.\u00a0(TCO 5) The market value of a loan is ________ 2.\u00a0(TCO 5) Which of the following is TRUE regarding the incremental cost of borrowing? 3.\u00a0(TCO 5) A house is for sale for $250,000. You have a choice of two 20-year Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-216653","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/216653","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=216653"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/216653\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=216653"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=216653"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=216653"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}