1. Points represent:

A. 2% of the amount of the loan

B. Monthly payments

C. An additional cost of receiving the mortgage

D. 3% up-front payment

E. None of these

2. Ben Brown bought a home for $225,000. He put down 20%. The mortgage is at 6

% for 30 years. Using the table in the handbook, his monthly payment is:

A. $1,319.04

B. $1,319.40

C. $1,216.80

D. $1,139.40

E. None of these

3. Chin Woo bought a home for $160,000. He put down 20%. The mortgage is at 8 1/2% for 25 years. Using the table in the handbook, his yearly payments are:

A. $1,238.00

B. $12,380.16

C. $12,830.61

D. $12,380.61

E. None of these

4. Stu Reese has a $150,000 7 % mortgage. His monthly payment is $1,010.10. His first payment will reduce the principal to an outstanding balance of:

A. $149,729.40

B. $149,927.40

C. $72.60

D. $149,910.40

E. None of these

5. Abe Aster bought a new split level for $200,000. Abe put down 30%. Assuming a rate of 11 1/2% on a

30 year mortgage, Abe's monthly payment is (use the table in the handbook):

A. $1,423.80

B. $1,387.40

C. $1,367.80

D. $1,982.00

E. None of these