From the perspective of the lending financial institution, interest rate risk is
A) lower on a 30-year fixed-rate mortgage than on a 15-year fixed-rate mortgage.
B) lower on a 15-year fixed-rate mortgage than on a 30-year fixed-rate mortgage.
C) higher on a 15-year fixed-rate mortgage than on a 30-year fixed-rate mortgage.
D) higher on a 15-year adjustable-rate mortgage than on a 30-year adjustable-rate mortgage.
Correct Answer:
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Q10: A _ mortgage allows the borrower to
Q11: Mortgage companies, commercial banks, and savings institutions
Q12: An institution that originates and holds a
Q13: A mortgage that requires interest payments for
Q14: Federally insured mortgages guarantee
A)loan repayment to the
Q16: _ was created in 1968 as a
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Q18: "Securitization" refers to the private insurance of
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Q20: At a given point in time, the
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