FIN 4713 Exam with all Correct & 100% Verified
Answers |Latest Version |Already Graded A+
FRM. (Term=30 years, Note Rate = 4.5%, Loan Amount = 800,000, Points=2) What are the net loan
proceeds? ✔Correct Answer-784,000
FRM. (Term=30 years, Note Rate = 4.5%, Loan Amount = 800,000, Points=2) What is the monthly loan
payment? ✔Correct Answer-4,053.48
FRM. (Term=30 years, Note Rate = 4.25%, Loan Amount = 800,000 Points=2) After 1 year, how much
will Julie have paid into principal? ✔Correct Answer-13486.94
FRM. (Term=30 years, Note Rate = 4.75%, Loan Amount = 800,000, Points=2) After 1 year, how much
will Julie have paid into interest? ✔Correct Answer-37,733.55
FRM. (Term=30 years, Note Rate = 4.00%, Loan Amount = 800,000, Points=2) How much of the 22th
payment goes to interest? ✔Correct Answer-2,583.23
FRM. (Term=30 years, Note Rate = 4.75%, Loan Amount = 800,000, Points=2) For the 27th payment,
how much will be applied to principal? ✔Correct Answer-1,115.39
FRM. (Term=30 years, Note Rate = 5.25%, Loan Amount = 800,000, Points=2) What is the balance
after the 48th payment? ✔Correct Answer-751105.92
The only number that changes when computing a Yield to Lender versus EBC is: ✔Correct Answer-
The PV
The element of an adjustable rate that is the "moving part" is the: ✔Correct Answer-Index
If a mortgage is to mature (i.e. become due) at a certain future time without any reduction in
principal, this is called: ✔Correct Answer-An interest only mortgage
An ARM mortgage loan that uses SOFR as the index and has a 2.25% margin has an initial rate of
4.5% when SOFR is 3.5%. We would refer to this loan as a: ✔Correct Answer-Teased ARM
The problem of negative amortization is that ✔Correct Answer-all of these are true.
When a lender allows a defaulted borrower to simply convey the property to the lender, this is
referred to as ✔Correct Answer-deed in lieu of foreclosure.
Which item is included when calculating both effective borrower costs (EBC) and lender's yield?
✔Correct Answer-discount points
A lender charges points to ✔Correct Answer-Any or all of these be reasons a lender charges points
The purpose of a minperm loan is _______________. ✔Correct Answer-to allow the development
to obtain a track record before placing a permanent loan
Soft costs include the following except except ______________. ✔Correct Answer-HVAC costs
Answers |Latest Version |Already Graded A+
FRM. (Term=30 years, Note Rate = 4.5%, Loan Amount = 800,000, Points=2) What are the net loan
proceeds? ✔Correct Answer-784,000
FRM. (Term=30 years, Note Rate = 4.5%, Loan Amount = 800,000, Points=2) What is the monthly loan
payment? ✔Correct Answer-4,053.48
FRM. (Term=30 years, Note Rate = 4.25%, Loan Amount = 800,000 Points=2) After 1 year, how much
will Julie have paid into principal? ✔Correct Answer-13486.94
FRM. (Term=30 years, Note Rate = 4.75%, Loan Amount = 800,000, Points=2) After 1 year, how much
will Julie have paid into interest? ✔Correct Answer-37,733.55
FRM. (Term=30 years, Note Rate = 4.00%, Loan Amount = 800,000, Points=2) How much of the 22th
payment goes to interest? ✔Correct Answer-2,583.23
FRM. (Term=30 years, Note Rate = 4.75%, Loan Amount = 800,000, Points=2) For the 27th payment,
how much will be applied to principal? ✔Correct Answer-1,115.39
FRM. (Term=30 years, Note Rate = 5.25%, Loan Amount = 800,000, Points=2) What is the balance
after the 48th payment? ✔Correct Answer-751105.92
The only number that changes when computing a Yield to Lender versus EBC is: ✔Correct Answer-
The PV
The element of an adjustable rate that is the "moving part" is the: ✔Correct Answer-Index
If a mortgage is to mature (i.e. become due) at a certain future time without any reduction in
principal, this is called: ✔Correct Answer-An interest only mortgage
An ARM mortgage loan that uses SOFR as the index and has a 2.25% margin has an initial rate of
4.5% when SOFR is 3.5%. We would refer to this loan as a: ✔Correct Answer-Teased ARM
The problem of negative amortization is that ✔Correct Answer-all of these are true.
When a lender allows a defaulted borrower to simply convey the property to the lender, this is
referred to as ✔Correct Answer-deed in lieu of foreclosure.
Which item is included when calculating both effective borrower costs (EBC) and lender's yield?
✔Correct Answer-discount points
A lender charges points to ✔Correct Answer-Any or all of these be reasons a lender charges points
The purpose of a minperm loan is _______________. ✔Correct Answer-to allow the development
to obtain a track record before placing a permanent loan
Soft costs include the following except except ______________. ✔Correct Answer-HVAC costs
