One hundred identical mortgages are pooled together into a pass-through security.Each mortgage has a $150,000 principal,a fixed annual interest rate of 8 percent (paid monthly),and is fully amortized over a term of 30 years.

What is the monthly payment on the mortgage pass-through if a 44 basis point servicing fee is deducted monthly?
A)$105,499.
B)$114,700.
C)$11,340.
D)$1,055.

Question

One hundred identical mortgages are pooled together into a pass-through security.Each mortgage has a $150,000 principal,a fixed annual interest rate of 8 percent (paid monthly) ,and is fully amortized over a term of 30 years.

What is the monthly payment on the mortgage pass-through if a 44 basis point servicing fee is deducted monthly?

What is the monthly payment on the mortgage pass-through if a 44 basis point servicing fee is deducted monthly?
A)$105,499.
B)$114,700.
C)$11,340.
D)$1,055.

Quizplus · Accepted Answer

The Answer of One hundred identical mortgages are pooled together into a pass-through security.Each mortgage has a $150,000 principal,a fixed annual interest rate of 8 percent (paid monthly),and is fully amortized over a term of 30 years.

What is the monthly payment on the mortgage pass-through if a 44 basis point servicing fee is deducted monthly?
A)$105,499.
B)$114,700.
C)$11,340.
D)$1,055.

One Hundred Identical Mortgages Are Pooled Together into a Pass-Through