Which one of the following is TRUE about Prepayment penalties:
A) They are never used with residential mortgages
B) They lower the effective cost if the loan is repaid before maturity
C) They are equivalent to charging additional points for the loan
D) They are not included in the APR calculation
Correct Answer:
Verified
Q22: One of the first amortizing mortgages was
Q23: At the end of five years, calculating
Q23: APR stands for which of the following?
A)Annual
Q25: Demand for a mortgage loan is considered:
A)Stable
Q29: Assuming all APRs equal, the effective interest
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
Q34: Because its payment stream looks like a
Q38: Points are also known as:
A)Third party charges
B)Reduction
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