Question

Brady has a 20-year fixed rate mortgage for $215,500 with monthly payments of $1,305.89. The annual interest rate is 4%. What is the total cost of the principal and interest for this loan rounded to the nearest dollar? (2 points)
a
$172,400
b
$224,120
c
$313,414
d
$391,767
Question 2 (2 points)
Sonia has a 5.8% fixed rate 20-year mortgage in the amount of $275,000. The total cost of principal and interest is about $465,262. Which of the following is closest to Sonia's monthly payment? (2 points)
a
$1,939
b
$2,326
c
$1,146
d
$1,375
Question 3 (2 points)
Ridley obtains a 20-year 6.3% fixed rate mortgage for $323,500. The monthly payments are about $2,374. What is the total amount of interest for Ridleys mortgage? (2 points)
a
$343,881
b
$246,260
c
$20,381
d
$35,895
Question 4 (2 points)
Barney has a 15-year adjustable rate mortgage that has a rate of 2.3% for the first 5 years. The amount of the mortgage is $339,000. What is the monthly payment during this initial period? (2 points)
a
$1,486.89
b
$2,228.64
c
$1,883.33
d
$1,926.65
Question 5 (2 points)
A bank advertises an adjustable rate mortgage with the following terms:

15 year 6/1 ARM at 5% with a 2/6 cap structure
What are the maximum interest rates for the 7th year and for the life of the mortgage?

(2 points)
a
7th year: 6%; Lifetime: 6%
b
7th year: 6%; Lifetime: 11%
c
7th year: 7%; Lifetime: 11%
d
7th year: 7%; Lifetime: 6%
Question 6 (2 points)
Mandy has a 30-year adjustable rate mortgage with a rate of 4.8% for the first 2 years. The monthly payment is $813.23. The amount of the mortgage is $155,000. What is the remaining balance after 2 years rounded to the nearest dollar? (2 points)
a
$150,143
b
$135,482
c
$144,667
d
$141,926
Question 7 (2 points)
A $600,000 balloon mortgage has terms of 15/6 with a 3% interest rate. What is the monthly payment rounded to the nearest dollar? (2 points)
a
$2,845
b
$4,143
c
$3,333
d
$3,433
Question 8 (2 points)
Ella obtains a $750,000 balloon mortgage for an investment property. The mortgage has terms of 15/3 at an interest rate of 5.5%. The monthly payment is $6,128.13. How much is the remaining balance after 3 years rounded to the nearest dollar? (2 points)
a
$529,387
b
$644,949
c
$704,391
d
$600,000
Question 9 (2 points)
A store owner used a balloon mortgage to purchase an investment property. The terms are shown:

Balloon Mortgage
$600,000
25/5 balloon
5.9% annual rate
Monthly Payment: $3,829.21
Balloon Payment: $541,463.72


What is the total cost of this balloon mortgage rounded to the nearest dollar? (2 points)
a
$545,293
b
$771,216
c
$919,010
d
$541,464
Question 10 (2 points)
A bank offers three mortgages shown. Which mortgage(s) will have fixed payments for at least the first 6 years?
Fixed rate mortgage at 5% for 15 years
Adjustable rate mortgage at 3% for 15 years with terms 6/2 and a cap of 2/4
Balloon mortgage at 4% with terms 15/4
(2 points)
a
Fixed rate only
b
Fixed rate and balloon only
c
Fixed rate and adjustable rate only
d
Fixed rate, adjustable rate, and balloon

Answer 1

I don't know sorry but I am 10th class