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: What is the principal portion of the
Q23: APR stands for which of the following?
A)Annual
Q24: One of the first amortizing mortgages was
Q25: Demand for a mortgage loan is considered:
A)Stable
Q26: Which of the following closing costs DO
Q28: Which of the following is NOT a
Q29: At the end of five years,calculating the
Q30: In comparison to the first month's payment
Q31: Over the life of the loan,which of
Q32: Risk is an important component of interest
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