1.A variable rate mortgage means:

a.The interest rate is not fixed b.The interest rate is fixed for five years c.The rate is not subject to change d.Larger monthly payments than a fixed rate e.None of these

2.An amortization schedule shows:

a.Balance of interest outstanding b.The increase to principal c.Increase in loan outstanding

d.Portion of payment broken down to interest and principal e.None of these

3.Beverly Frost bought a home for $190,000 with a down payment of $19,000 at 7% for 25 years. Since then the rate has risen to 9%. How much more would her monthly payment be if she bought the house at 9%?

a.$208.97 b.$436.40 c.$143.00 d.$227.43 e.None of these

4.Daniel and Jan agreed to pay $560,000 for a four-bedroom colonial home in Waltham, Massachusetts, with a $60,000 down payment. They have a 30-year mortgage at a fixed rate of 6.00%.

How much is their monthly payment? After the first payment, what would be the balance of the principal? 5.Rick Rueta purchased a $90,000 home at 9% for 30 years with a down payment of $20,000. His annual real estate tax is $1,800 along with an annual insurance premium of $960. Ricks bank requires that his monthly payment include an escrow deposit for the tax and insurance. What is the total payment each month for Rick?