1. A borrower has a 30-year mortgage loan for $200,000 with an interest rate of 5% and monthly payments. If she wants to pay off the loan after 8 years, what would be the outstanding balance on the loan?

1. 1. $84,886
   2. $91,246
   3. $171,706
   4. $175,545
2. A borrower takes out a 30-year mortgage loan for $100,000 with an interest rate of 6% plus 2 points. What is the effective annual interest rate on the loan if the loan is carried for all 30 years?
3. 1. 6.0%
   2. 6.2%
   3. 6.4%
   4. 6.6%

3) A borrower takes out a 30-year adjustable rate mortgage loan for $200,000 with monthly payments. The first two years of the loan have a teaser rate of 4%, after that, the rate can reset with a 2% annual rate cap. On the reset date, the composite rate is 5%. What would the Year 3 monthly payment be?

1. a) $955
2. b)$1,071
3. c)$1,067
4. d)$1,186
5. e)Because of the rate cap, the payment would not change.
6. 4) A borrower takes out a 30-year adjustable rate mortgage loan for $200,000 with monthly payments. The first two years of the loan have a teaser rate of 4%, after that, the rate can reset with a 5% annual payment cap. On the reset date, the composite rate is 6%. What would the Year 3 monthly payment be?

1. $955
2. $1,003
3. $1,067
4. $1,186
5. Because of the payment cap, the payment would not change.