9. What is the principal portion of the 188^th months payment for a $450,000 15/15 Hybrid ARM Mortgage (first 15 years are fixed rate and second 15 years are adjustable all payments are fully amortizing) with the following parameters:

Fixed Interest Rate: 5.5%

1^st Year of ARM portion - LIBOR Index: 1.85%

2^nd Year of ARM portion - LIBOR Increase: 1.45%

Margin: 275 basis points

Annual Periodic Cap: 2%

Lifetime Cap: 5%

$786.34

$906.79

$1165.87

$1242.31

None of the above

10. What is the maximum loan amount the bank will lend you if your gross monthly income is $6000, you have $400 in monthly long-term obligations, and you can make a down payment of 15% of the home price given the following lenders loan parameters?

Interest Rate: 6.5%

Loan type: 30 years

Housing Expense Ratio: 28%

Total Debt Ratio: 41%

$246,808.88

$265,794.18

$279,781.82

$290,363.39

None of the above

11. Which of the following is/are decisions which a mortgage borrower must consider?

a. Fixed vs. variable rate

b. How soon the loan will be paid off

c. Increasing vs. level payments

d. All of the above

12. How much interest will you pay during the 14^th year of a $350,000 house price, 30 year, 6.5% monthly compounded, 80 LTV loan?

$7755.94

$8379.86

$13,968.37

$14,627.41

None of the above

13. How much principal will you pay with the 76^th payment of the loan?

$245.11

$379.57

$1119.24

$1390.22

None of the above

14. What is the balance at the end of year 12?

$162,405.56

$184,346.44

$212,621.26

$225,003.69

None of the above