One of the most popular amortizing mortgages today is the constant payment mortgage. Which of the following characterizes the components of the CPM payment over the life of the loan? Interest Amortization Payment
A) Decreasing Decreasing Decreasing
B) Increasing Decreasing Constant
C) Decreasing Increasing Constant
D) Constant Constant Constant
Correct Answer:
Verified
Q9: Prepayment penalties increase the lender's mortgage yield
Q15: Inflation makes very little difference to lenders
Q16: With every CPM, the effective costs of
Q19: Lenders and investors worry about default,interest rate,marketability,and
Q22: One of the first amortizing mortgages was
Q23: At the end of five years, calculating
Q30: In comparison to the first month's payment
Q32: Risk is an important component of interest
Q34: Because its payment stream looks like a
Q38: Points are also known as:
A)Third party charges
B)Reduction
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