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A bank makes a 30-year Fully Amortizing FRM for $1,000,000 at an annual interest rate of 4% compounded monthly, with monthly payments. What is the
A bank makes a 30-year Fully Amortizing FRM for $1,000,000 at an annual interest rate of 4% compounded monthly, with monthly payments. What is the market value of this loan after 7 years of payments if the annual interest rate for this loan is 10% compounded monthly? Pick the closest number.
| 1,000,000 |
| 861,000 | 544,000 | 515,000 | 288,000 |
Which of the following is a reason a borrower may want to refinance?
| lenders demand lower PTIs | ||
| market interest rates go up | ||
| the borrowers house value falls | ||
| lenders demand lower LTVs | ||
| the borrower's credit score rises |
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