Question

The finance charges for a mortgage are typically computed using the: a. none of these b....

The finance charges for a mortgage are typically computed using the: a. none of these b. add-on method c. discount method. d. simple interest (declining balance) method

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
9. Calculating an installment loan payment using the add-on method Calculating the loan payment on an...
9. Calculating an installment loan payment using the add-on method Calculating the loan payment on an add-on interest installment loan Installment loans allow borrowers to repay the loan with periodic payments over time. They are more common than single–payment loans because it is easier for most people to pay a fixed amount periodically (usually monthly) than budget for paying one big amount in the future. Interest on installment loans may be computed using the simple interest method or the add-on...
The Martinezes are planning to refinance their home (assuming that there are no additional finance charges)....
The Martinezes are planning to refinance their home (assuming that there are no additional finance charges). The outstanding balance on their original loan is $200,000. Their finance company has offered them two options: Option A: A fixed-rate mortgage at an interest rate of 6.5% per year compounded monthly, payable over a 30-year period in 360 equal monthly installments. Option B: A fixed-rate mortgage at an interest rate of 6.25% per year compounded monthly, payable over a 15-year period in 180...
Callable bonds are A. Convertible bonds. B. Eurobonds. C. Mortgage bonds. D. None of the above.
Callable bonds are A. Convertible bonds. B. Eurobonds. C. Mortgage bonds. D. None of the above.
Of the following, which form of mortgage securitization is used the least?      CMO B.      Mortgage-Backed...
Of the following, which form of mortgage securitization is used the least?      CMO B.      Mortgage-Backed Bond C.      Mortgage Pass-Through D.     Home Equity Loan E.      Second Mortgage          Which of the following statements about mortgage markets is/are true?      Mortgage companies service more mortgages than they originate. I     Servicing fees typically range from 2% to 4%. II    Most mortgage sales are with recourse. IV.    The government is involved in the residential mortgage markets.      I, III, and...
Consumer finance: Four years ago you bought a home using a 15-year mortgage. The mortgage had...
Consumer finance: Four years ago you bought a home using a 15-year mortgage. The mortgage had an interest rate of 6% (or 0.50% per month) and the original loan amount was $230,000. Your monthly payments (ignoring escrow payments) are $1,940.87. Today you have 132 monthly payments remaining. You got a bonus at work (or a gift or something) so in addition to you next monthly payment you will send in $6,000 to reduce the principal on the loan. A. What...
3. You take a $500,000 mortgage to buy a vacation home. The mortgage entails equal monthly...
3. You take a $500,000 mortgage to buy a vacation home. The mortgage entails equal monthly payments for 10 years, 120 payments in all, with the first payment in one month. The bank charges you an interest rate of 9.6% (APR with monthly compounding). a. How much of your first payment is interest, and how much is repayment of principal? b. What is the loan balance immediately after the 10th payment? (Calculate the loan balance using the annuity formula.) c....
5) A zero-coupon bond: A. typically trades at a discount to face value B. would trade...
5) A zero-coupon bond: A. typically trades at a discount to face value B. would trade at a premium to face value in the rare circumstances that the bond has a negative yield C. both (A) and (B) are true. D. none of the above
Which of the following types of interest is not deductible? Select one: a. None of these...
Which of the following types of interest is not deductible? Select one: a. None of these b. Credit card interest c. All of the above d. Qualified mortgage interest on second residence e. Qualified mortgage interest on residence
Assume you have taken out a balloon mortgage loan for $2,000,000 to finance the purchase of...
Assume you have taken out a balloon mortgage loan for $2,000,000 to finance the purchase of a commercial property. The loan has a term of 3 years but amortizes over 25 years. Calculate the balloon payment at maturity (Year 3) if the interest rate on this loan is 6%. a. $2,495,479.19 b. $1,886,474.90 c. $2,196,447.59 d. $5,637.99
Using higher interest rates will a. none of the answers is correct. b. decrease the future...
Using higher interest rates will a. none of the answers is correct. b. decrease the future value of any investment. c. increase the future value of any investment. d. not affect the future value of the investment. e. make less amount of money to be received for the investments made today
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT