REFM PREREquisitE iii ExaM NEwEst 2025/2026 with CoMPlEtE
quEstioNs aNd CoRRECt aNswERs |alREady GRadEd a+||BRaNd
NEw VERsioN!
(what is) amortization - aNswER-the repayment schedule for the mortgage
loan principal
what does principal mean - aNswER-the capital amount borrowed
another term for interest-only loan - aNswER-zero-amortization (bullet) loan
how does an interest-only loan work? - aNswER-interest is paid on the
outstanding principal until the time of the final monthly payment, when the
principal balance is also paid
the debt service is deducted from the... - aNswER-cash flow
interest payments are paid with _________ while the principal debt service
loan will be paid off with _________ - aNswER-cash flows generated from
operations; the property sale proceeds
positive amortization - aNswER-Occurs when the monthly mortgage payment
decreases the loan balance
quEstioNs aNd CoRRECt aNswERs |alREady GRadEd a+||BRaNd
NEw VERsioN!
(what is) amortization - aNswER-the repayment schedule for the mortgage
loan principal
what does principal mean - aNswER-the capital amount borrowed
another term for interest-only loan - aNswER-zero-amortization (bullet) loan
how does an interest-only loan work? - aNswER-interest is paid on the
outstanding principal until the time of the final monthly payment, when the
principal balance is also paid
the debt service is deducted from the... - aNswER-cash flow
interest payments are paid with _________ while the principal debt service
loan will be paid off with _________ - aNswER-cash flows generated from
operations; the property sale proceeds
positive amortization - aNswER-Occurs when the monthly mortgage payment
decreases the loan balance
