Q21. A variable rate mortgage means:

a. payments will be larger than on a fixed rate mortgage

b. the interest rate cannot change

c. the interest rate is fixed for the first five years

d. the interest rate can change

Q22. Jayne purchased a home for $240,000.00 with a down payment of $48,000.00. The rate of interest was 5-3/4 for 30 years. What was her monthly mortgage payment?

a. $962.70

b. $2,146.85

c. $1,121.28

d. $1,850.46

e. $1000.00

Q23. Bill took out a $125,000.00 mortgage on a lake house. The bank charged 2 points at the closing. The points amounted to:

a. $750.00

b. $7,500.00

c. $2,500.00

d. $5,000.00

Q24. Land or anything permanently attached to the land is termed:

a. real property

b. FNMA

c. collateral

d. personal property

Q25. All payments on a mortgage are required to be paid on a __________ basis.

a. semiannually

b. biweekly

c. monthly

d. weekly

e. agreed