1. Capped Adjustable Rate Mortgages normally limit interest rate increases in the monthly payment but not loan balances calculations when negative amortization is permitted: a. True b. False 2. A cap of 2-5 with an Adjustable Rate Mortgage means: a. The rate can change by 3 percent per year b. The loan balance will increase by 3 percent overall c. The monthly payment can increase by a maximum amount of 2 percent per year but not more than 5 percent overall d. The monthly payment can increase by a maximum amount of 5 percent per year but the loan balance must increase by 2 percent every year the loan is outstanding 3. A free to float loan has no cap provisions. Negative amortization is still a possibility. a. True b. False 4. The term External depreciation refers to the following situation: a. Normal wear and tear of the structure (building) b. The need to install windows and an upgraded electrical system c. A flat roof on a building d. Problems associated with the property's location 5. Non-Repairable Physical Depreciation refers to: a. Structural obsolesce that takes place over time b. Carpeting, Paint and Use damage that occurs to a property c. The interior layout of the property d. All of the above 1. Capped Adjustable Rate Mortgages normally limit interest rate increases in the monthly payment but not loan balances calculations when negative amortization is permitted: a. True b. False 2. A cap of 2-5 with an Adjustable Rate Mortgage means: a. The rate can change by 3 percent per year b. The loan balance will increase by 3 percent overall c. The monthly payment can increase by a maximum amount of 2 percent per year but not more than 5 percent overall d. The monthly payment can increase by a maximum amount of 5 percent per year but the loan balance must increase by 2 percent every year the loan is outstanding 3. A free to float loan has no cap provisions. Negative amortization is still a possibility. a. True b. False 4. The term External depreciation refers to the following situation: a. Normal wear and tear of the structure (building) b. The need to install windows and an upgraded electrical system c. A flat roof on a building d. Problems associated with the property's location 5. Non-Repairable Physical Depreciation refers to: a. Structural obsolesce that takes place over time b. Carpeting, Paint and Use damage that occurs to a property c. The interior layout of the property d. All of the above