Assuming all APRs equal, the effective interest rate on a loan is highest when:
A) The loan has no points and a 30 year maturity and is prepaid in five years
B) The loan has no points and is prepaid at maturity
C) Points are charged and the loan is paid off at maturity in 30 years
D) Points are charged and the loan has a 30 year maturity but prepaid in five years
Correct Answer:
Verified
Q23: APR stands for which of the following?
A)Annual
Q23: At the end of five years, calculating
Q25: Demand for a mortgage loan is considered:
A)Stable
Q27: Which one of the following is TRUE
Q30: In comparison to the first month's payment
Q30: Which mortgage would a borrower prefer to
Q32: Over the life of the loan, which
Q33: Which of the following closing costs do
Q34: Because its payment stream looks like a
Q38: Points are also known as:
A)Third party charges
B)Reduction
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