A fixed interest rate mortgage has all of the following characteristics except
A) The interest rate does not vary over the life of the loan.
B) The lender has higher interest rate risk compared to a variable interest rate mortgage.
C) The interest rate is set relative to a benchmark.
D) If interest rates fall, mortgages may be prepaid.
Correct Answer:
Verified
Q1: In a mortgage loan, the _is a
Q2: Mortgages are _ to the issuer and
Q3: The; major borrowers in the mortgage markets
Q4: A mortgage lender would evaluate the _
Q6: The _ risk that nominal rates rise
Q7: _ includes the real property that backs
Q8: Which of the following is false?
A) The
Q9: A mortgage borrower may choose to pay
Q10: The annualized discount factor that is used
Q11: Which of the following is false?
A) Subprime
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