While reviewing the documents on your new mortgage you discover that the APR is greater than the contract interest rate even though you paid no discount points.How can this happen?
A) the lender made a mistake,the rates should be equal
B) the market rate increased just before the loan was signed and the lender adjusted for that
C) you paid financing fees other than discount points
D) the contract rate does not account for monthly compounding
E) the lender made a mistake,the contract rate is always greater than the APR
Correct Answer:
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Q1: You need a 30-year FRM and have
Q2: The ability of a borrower in any
Q3: The effective interest charge on a loan
Q4: A discount point is:
A) one percent of
Q5: Suppose you take an FRM of $150,000
Q7: A prepayment penalty in a mortgage has
Q8: Your monthly payment on a $125,000 fixed-rate
Q9: Suppose your FRM monthly payment is $1048.82
Q10: The mortgage constant (MC)factor calculates the payment
Q11: In Roman law the an instrument used
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