4. In a period of price inflation, where the average prices of consumer goods increase over time, the real value of the monthly payments made by a borrower who financed their acquisition of property with a fixed-payment mortgage loan will... (a) increase initially and then decrease for the remaining life of the loan. (b) increase throughout the life of the loan. (c) remain constant. (d) decrease throughout the life of the loan, 5. If, in foreclosure, a fender is limited to the value of property serving as collateral for the mortgage, the loan is referred to as a... (a) promissory note. (b) subordination clause (c) recourse loan. (d) non-recourse loan. 6. A lender offers an option ARM where, for the first two years, borrowers are allowed to make a payment in any amount so long as it is grenter than a minimum payinent monthly payment of $1250. Suppose you use this type of loan to borrow $525,000 If the rate on the loan is 4.00% and you make an initial payment of $1.500.00. the balance of your loan after inaking this payment is... (a) less than $525,000. (b) equal to $525,000. (c) greater than $525,000. (d) there is not enough information to determine an answer. 7. If a borrower receives a rebate at origination, their effective cost of borrowing for a 30-year fixed-rate mortgage with a 7% note rate is... (a) less than 7%. (b) 7%. (c) more than 7%. (d) there is not enough information to determine an