_4. A lender increases the return on a loan by: a. charging more points and fees b. charging less points and fees c. shortening the life of the loan d. lengthening the life of the loan 5. When a monthly payment made by a borrower exceeds the amount required to service the loan, then normally the excess payment is applied to: a. more interest b. more principal c. the monthly payment which decreases the following month d. the monthly payment which increases the following month 6. The most popular or frequently selected mortgage loan by borrowers is: a. Constant Amortized Mortgage b. Adjustable-Rate Mortgage c. Fixed Rate Mortgage d. Graduated Payment Mortgage