Multiple choice question

1) Which of the following are true of mortgage interest rates? A) Interest rates on mortgage loans are determined by three factors: current long-term market rates, the term of the mortgage, and the number of discount points paid. B) Mortgage interest rates tend to track along with Treasury bond rates. C) The interest rate on 15-year mortgages is lower than the rate on 30-year mortgages, all else the same. D) All of the above are true. 2) A borrower with a 30-year loan can create a Growing Equity Mortgage by A) simply increasing the monthly payments beyond what is required and designating that the excess be applied entirely to the principal. B) converting his ARM into a conventional mortgage. C) converting his conventional mortgage into an ARM. D) converting his conventional mortgage into a GPM. 3) A loan for borrowers who do not qualify for loans at the usual market rate of interest because of a poor credit rating or because the loan is larger than justified by their income is A) a subprime mortgage. B) a securitized mortgage. C) an insured mortgage. D) a graduated-payment mortgage