Real Estate Principles Chapter 11 Answer Key

Real Estate Principles Chapter 11 Answer Key - Real Estate...

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Real Estate Principles: A Value Approach Chapter 11 Test Problems Answer Key 1. Private mortgage insurance (PMI) is usually required on ___________ loans with loan- to-value ratios greater than ___________ percent. a. Home, 75 percent b. Home, 60 percent c. Income property, 75 percent d. Income property, 80 percent e. None of the above 2. The dominant loan type originated and kept by most depository institutions is the: a. Fixed-payment, fully amortized mortgage b. Adjustable rate mortgage c. Purchase-money mortgage d. FHA-insured mortgage 3. Which of the following mortgage types has the most default risk, assuming the initial loan-to-value, contract interest rate, and all other loan term are identical? a. Interest-only loans b. Early payment loans c. Partially amortized loans d. There is no difference in the default risk of these loans 4. A mortgage that is intended to enable older households to “liquify” the equity in their home is the: a. Graduated payment mortgage (GPM)
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b. Adjustable rate mortgage (ARM)
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Real Estate Principles Chapter 11 Answer Key - Real Estate...

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