6. A household takes out a fully amortized adjustable-rate loan for $640,000 over a 25 year term at an initial rate of 4.2%. After 3 years the interest rate increases to 6.2%. How much do the monthly repayments increase by? a) $676.60 b) $528.44 c) $502.69 d) $443.80 7. A household bought a property 7 years ago for $400,000. This was financed through a fully amortizing 90% LTV loan for 25 years at a fixed-rate of 3.25%. The house is now worth $650,000. How much is the equity the household now has in the house? a) $392,463.82 b) $250,000.00 c) $318,847.69 d) $363,398.26 8. A mortgage is BEST described as a legal document that: a) Creates an obligation to repay a loan under specific terms. b) Defines an interest in real estate. c) Names real estate as the security, or collateral, for the repayment of a loan. d) Conveys ownership of a property to its purchaser