Question 1

Real estate loans made by private lenders that are not FHA-insured or VA-guaranteed are called ____________________ mortgages.

Accepted Answer

conventional

Question 2

____________________ are the expenses incurred in conjunction with the sale of real estate.

Accepted Answer

Closing costs

Question 3

A(n) ____________________ is any loan in which real property is used as security for a debt.

Accepted Answer

mortgage

Question 4

Narrative 14-1
For problems in this section, use Table 14-1 from your text to find the monthly mortgage payments, when necessary.
-Refer to Narrative in your text 14-1. Prepare an amortization schedule for the first 3 payments of an $87,000 mortgage at $5 \frac { 3 } { 4 } \%$ for 30 years. Find the loan balance after 3 payments.

Accepted Answer

The answer of Narrative 14-1
For problems in this section, use...

Question 5

Narrative 14-1
For problems in this section, use Table 14-1 from your text to find the monthly mortgage payments, when necessary.
-Refer to Narrative in your text 14-1. Leandro has a mortgage of $89,000 at $8 \frac { 1 } { 2 } \%$ for 25 years. Find the total interest.

Accepted Answer

To find the total interest, calculate the total amount paid over the life of the loan and subtract the principal. Using the mortgage table, find the monthly payment for $1,000 at $8 \frac{1}{2}\%$ for 25 years, multiply by 89 (since the mortgage is $89,000), and then multiply by 300 (the number of months in 25 years). Subtract the principal ($89,000) from this total to find the interest.

Question 6

Narrative 14-1
For problems in this section, use Table 14-1 from your text to find the monthly mortgage payments, when necessary.
-Refer to Narrative in your text 14-1. Roberto has a mortgage of $89,500 at $8 \frac { 1 } { 2 } \%$ for 20 years. Find the total interest.

Accepted Answer

The answer of Narrative 14-1
For problems in this section, use...

Question 7

Narrative 14-1
For problems in this section, use Table 14-1 from your text to find the monthly mortgage payments, when necessary.
-Refer to Narrative in your text 14-1. Lyle has a mortgage of $96,000 at $7 \frac { 3 } { 4 } \%$ for 30 years. Find the total interest.

Accepted Answer

The total interest is the difference between the total amount paid and the amount borrowed. The total amount paid is the monthly payment multiplied by the number of months in 30 years (360). The monthly payment is $527.76, so the total amount paid is $527.76 * 360 = $190,017.60. The total interest is $190,017.60 - $96,000 = $94,017.60.

Question 8

Narrative 14-1
For problems in this section, use Table 14-1 from your text to find the monthly mortgage payments, when necessary.
-Refer to Narrative in your text 14-1. Vannesa has a mortgage of $92,000 at $5 \frac { 1 } { 2 } \%$ for 20 years. Find the total interest.

Accepted Answer

The answer of Narrative 14-1
For problems in this section, use...

Question 9

A(n) ____________________ is the limit on the amount the interest rate can increase on an ARM.

Accepted Answer

The answer of A(n) ____________________ is the limit on the...

Question 10

Narrative 14-1
For problems in this section, use Table 14-1 from your text to find the monthly mortgage payments, when necessary.
-Refer to Narrative in your text 14-1. Find the total interest for a mortgage of $112,500 at 6% for 30 years.

Accepted Answer

The answer of Narrative 14-1
For problems in this section, use...

Question 11

Conventional loans are made by private lenders and generally have a(n) ____________________ interest rate than either FHA or VA loans.

Accepted Answer

The answer of Conventional loans are made by private lenders...

Question 12

ARM stands for ____________________.

Accepted Answer

The answer of ARM stands for ____________________.
...

Question 13

A meeting at which the buyer and seller of real estate conclude all matters pertaining to the transaction is called a(n) ____________________.

Accepted Answer

The answer of A meeting at which the buyer and...

Question 14

A home ____________________ loan is a lump-sum second mortgage loan made on the available equity in a home.

Accepted Answer

The answer of A home ____________________ loan is a lump-sum...

Question 15

____________________ is the process of paying off a financial obligation in a series of equal regular payments.

Accepted Answer

The answer of ____________________ is the process of paying off...

Question 16

Narrative 14-1
For problems in this section, use Table 14-1 from your text to find the monthly mortgage payments, when necessary.
-Refer to Narrative in your text 14-1. Find the total interest for a mortgage of $96,500 at $6 \frac { 3 } { 4 } \%$ for 25 years.

Accepted Answer

The total interest for a mortgage can be calculated by subtracting the original loan amount from the total amount paid over the life of the loan. Without the specific table (Table 14-1) and formula provided in the text, the exact calculation process can't be replicated here. However, the correct answer is based on the assumption that the calculation has been done correctly according to the given interest rate and loan term, leading to a total interest of $103,544.50.

Question 17

Narrative 14-1
For problems in this section, use Table 14-1 from your text to find the monthly mortgage payments, when necessary.
-Refer to Narrative in your text 14-1. Ursula has a mortgage of $82,000 at $6 \frac { 3 } { 4 } \%$ for 25 years. Find the total interest.

Accepted Answer

The answer of Narrative 14-1
For problems in this section, use...

Question 18

Narrative 14-1
For problems in this section, use Table 14-1 from your text to find the monthly mortgage payments, when necessary.
-Refer to Narrative in your text 14-1. Prepare an amortization schedule for the first 2 payments of a $97,000 mortgage at $3 \frac { 3 } { 4 } \%$ for 20 years. Find the loan balance after 2 payments.

Accepted Answer

The answer of Narrative 14-1
For problems in this section, use...

Question 19

Mortgage discount ____________________, added to the cost of a mortgage, allow the lender to increase the yield without showing an increase in the mortgage interest rate.

Accepted Answer

The answer of Mortgage discount ____________________, added to the cost...

Question 20

An account used by mortgage lenders for the safekeeping of the funds accumulating to pay next year's property taxes and hazard insurance is called a(n) ____________________ account.

Accepted Answer

The answer of An account used by mortgage lenders for...

Quiz 14: Mortgages

Real estate loans made by private lenders that are not FHA-insured or VA-guaranteed are called ____________________ mortgages.

____________________ are the expenses incurred in conjunction with the sale of real estate.

A(n) ____________________ is any loan in which real property is used as security for a debt.

Narrative 14-1 For problems in this section, use Table 14-1 from your text to find the monthly mortgage payments, when necessary. -Refer to Narrative in your text 14-1. Leandro has a mortgage of $89,000 at 812%8 \frac { 1 } { 2 } \%821​% for 25 years. Find the total interest.

Narrative 14-1 For problems in this section, use Table 14-1 from your text to find the monthly mortgage payments, when necessary. -Refer to Narrative in your text 14-1. Roberto has a mortgage of $89,500 at 812%8 \frac { 1 } { 2 } \%821​% for 20 years. Find the total interest.

Narrative 14-1 For problems in this section, use Table 14-1 from your text to find the monthly mortgage payments, when necessary. -Refer to Narrative in your text 14-1. Lyle has a mortgage of $96,000 at 734%7 \frac { 3 } { 4 } \%743​% for 30 years. Find the total interest.

Narrative 14-1 For problems in this section, use Table 14-1 from your text to find the monthly mortgage payments, when necessary. -Refer to Narrative in your text 14-1. Vannesa has a mortgage of $92,000 at 512%5 \frac { 1 } { 2 } \%521​% for 20 years. Find the total interest.

A(n) ____________________ is the limit on the amount the interest rate can increase on an ARM.

Narrative 14-1 For problems in this section, use Table 14-1 from your text to find the monthly mortgage payments, when necessary. -Refer to Narrative in your text 14-1. Find the total interest for a mortgage of $112,500 at 6% for 30 years.

Conventional loans are made by private lenders and generally have a(n) ____________________ interest rate than either FHA or VA loans.

ARM stands for ____________________.

A meeting at which the buyer and seller of real estate conclude all matters pertaining to the transaction is called a(n) ____________________.

A home ____________________ loan is a lump-sum second mortgage loan made on the available equity in a home.

____________________ is the process of paying off a financial obligation in a series of equal regular payments.

Narrative 14-1 For problems in this section, use Table 14-1 from your text to find the monthly mortgage payments, when necessary. -Refer to Narrative in your text 14-1. Find the total interest for a mortgage of $96,500 at 634%6 \frac { 3 } { 4 } \%643​% for 25 years.

Narrative 14-1 For problems in this section, use Table 14-1 from your text to find the monthly mortgage payments, when necessary. -Refer to Narrative in your text 14-1. Ursula has a mortgage of $82,000 at 634%6 \frac { 3 } { 4 } \%643​% for 25 years. Find the total interest.

Mortgage discount ____________________, added to the cost of a mortgage, allow the lender to increase the yield without showing an increase in the mortgage interest rate.

An account used by mortgage lenders for the safekeeping of the funds accumulating to pay next year's property taxes and hazard insurance is called a(n) ____________________ account.

Narrative 14-1 For problems in this section, use Table 14-1 from your text to find the monthly mortgage payments, when necessary. -Refer to Narrative in your text 14-1. Leandro has a mortgage of $89,000 at $8 \frac { 1 } { 2 } \%$ for 25 years. Find the total interest.

Narrative 14-1 For problems in this section, use Table 14-1 from your text to find the monthly mortgage payments, when necessary. -Refer to Narrative in your text 14-1. Roberto has a mortgage of $89,500 at $8 \frac { 1 } { 2 } \%$ for 20 years. Find the total interest.

Narrative 14-1 For problems in this section, use Table 14-1 from your text to find the monthly mortgage payments, when necessary. -Refer to Narrative in your text 14-1. Lyle has a mortgage of $96,000 at $7 \frac { 3 } { 4 } \%$ for 30 years. Find the total interest.

Narrative 14-1 For problems in this section, use Table 14-1 from your text to find the monthly mortgage payments, when necessary. -Refer to Narrative in your text 14-1. Vannesa has a mortgage of $92,000 at $5 \frac { 1 } { 2 } \%$ for 20 years. Find the total interest.

Narrative 14-1 For problems in this section, use Table 14-1 from your text to find the monthly mortgage payments, when necessary. -Refer to Narrative in your text 14-1. Find the total interest for a mortgage of $96,500 at $6 \frac { 3 } { 4 } \%$ for 25 years.

Narrative 14-1 For problems in this section, use Table 14-1 from your text to find the monthly mortgage payments, when necessary. -Refer to Narrative in your text 14-1. Ursula has a mortgage of $82,000 at $6 \frac { 3 } { 4 } \%$ for 25 years. Find the total interest.