Site MapHelpFeedbackMultiple Choice Quiz 2
Multiple Choice Quiz 2
(See related pages)

1
Interest only mortgages do not build up any equity in the early years.
A)True
B)False
2
ARM means the interest rate cannot change.
A)True
B)False
3
A bi-weekly mortgage means 26 payments per year.
A)True
B)False
4
A mortgage of $70,000 with 3 points means the borrower would have to pay at closing $1,400
A)True
B)False
5
From the table in the handbook, the monthly payment on a home purchased for $160,000 with 10 percent down at 7% interest for 25 years is $1018.08
A)True
B)False
6
A monthly payment of $700 on a 30-year $70,000 mortgage results in a total cost of interest of $182,000.
A)True
B)False
7
Reverse mortgages:
A)Are meant for new buyers
B)Could help the elderly
C)Never come due
D)Are always 2% higher than conventional mortgages
E)None of the above
8
Joe Francis is charged 2 points on a $95,000 loan at time of closing. The original price of the home before the down payment was $118,000. The points in dollars cost Joe:
A)$950
B)$2,000
C)$4,100
D)$1,900
E)None of the above
9
Lala Miller bought a home for $170,000. She put down 30 percent. The mortgage is at 7 ½ % interest for 25 years. By using the table in the handbook, her monthly payment is:
A)$1,256.30
B)$2,156.30
C)$879.41
D)$798.41
E)None of the above
10
Reductions in principal in the early years of a mortgage:
A)Go up slowly
B)Go down very slowly
C)Never change
D)Go down very quickly
E)None of the above
11
An escrow account:
A)Is for repairs and maintenance
B)Reduces principal
C)Increases principal
D)Is like a savings account for insurance and property taxes
E)None of the above
12
Warren Ford bought a new split level for $180,000. He put down 25 percent. Assuming a rate of 9 % on a 30-year mortgage, Warren's monthly payment is:
A)$1,449.00
B)$1,086.75
C)$1,494.00
D)$1,068.75
E)None of the above
13
Shelley Katz bought a home for $160,000 with a down payment of $30,000. The rate of interest was 6% for 35 years. Her monthly payment is:
A)$913.60
B)$931.06
C)$742.30
D)$724.30
E)None of the above
14
Neal Feldman bought a home for $120,000 with a down payment of $20,000. His rate of interest is 8% for 35 years. The balance of the mortgage at the end of the 1st month is:
A)$43.44
B)$44.37
C)$99,955.80
D)$99,955.67
E)None of the above
15
A $105,000 selling price with $20,000 down at 7 ½ % interest for 25 years results in a monthly payment of:
A)$628.15
B)$621.85
C)$739.00
D)$628.51
E)None of the above





To learn more about the book this website supports, please visit its Information Center.
Copyright (c)2011 McGraw-Hill Education .
Any use is subject to the Terms of Use and Privacy Notice | Report Piracy


OLC Prac Bus Math 10eOnline Learning Center

Home > Chapter 15 > Multiple Choice Quiz 2