Fill in the blank. In a given FRM fully-amortized mortgage, the scheduled payment remains the same over time. The portion of the scheduled payment that goes to principal over time and the portion of the scheduled payment that pays interest over time. A. Remains the same; Remains the same B. Decreases; Increases C. Increases; Decreases D. Cannot be determined with the information given; Cannot be determined with the information given E. Remains the same; Increases Question 2 Homer is looking to buy a home with a price of $250,000. The bank is offering him a 30 year fixed rate mortgage at a 3.75% mortgage rate with 90% LTV. If Homer accepts these conditions and can afford the down payment, what will be his monthly mortgage payments? Answer is positive and rounded to the cents. A. $1,157.79 B. $1,967.76 C. $1,801.23 D. $1,574.21 E. $1,042.01 Question 3 SMM Calculation. Under 175% PSA prepayment model, what is the SMM in mont 25 of a mortgage? Expressed as a fraction, rounded to 6 decimals. Formulas: if t 30 SMM = 1 -(1-CPR)/12 A. 0.010855 B. 0.005503 C. 0.000292 D. 0.007602 E. 0.087500 Question 4 Which of the following mortgages will have the largest monthly scheduled pay- ment? Note: For B, only compare its monthly scheduled payment up to the balloon payment A. Fully amortizing 30 year FRM, annual mortgage rate-5%, mortgage amount $150,000 B. 30 year FRM, annual mortgage rate=4%, mortgage amount $150,000 with a balloon payment of $20,000 at the end of the loan C. Fully amortizing 15 year FRM, annual mortgage rate1%, mortgage amount $150,000 D. Fully amortizing 30 year FRM, annual mortgage rate 6%, mortgage amount $150,000 E. Fully amortizing 30 year FRM, annual mortgage rate=3%, mortgage amount $150,000