QUESTION 1

Suppose you have a $1 million, 5% fixed rate mortgage with annual payments and a maturity of 30 years. What is your approximate annual payment?

		$60,051
		$65,051
		$70,051
		$75,051
		none of the above

QUESTION 2

Suppose you have a $1 million, 5% fixed rate mortgage with annual payments, a maturity of 30 years and a balloon payment of $750,000. What is your approximate annual payment?

		$50,763
		$51,763
		$52,763
		$53,763
		none of the above

QUESTION 3

Suppose your annual income is $50,000 and your lender will allow you to have a mortgage payment that combined with other debt payments and property taxes, which in your case amount to $500 per month, is no more than 33% of your monthly income. If the current 30-year mortgage rate is 5%, approximately how large a mortgage can you qualify for (assuming you have the required cash for the necessary down payment)?

		$160,000
		$161,000
		$162,000
		$163,000
		none of the above

QUESTION 4

Which of the following borrowers would be considered subprime. One with a FICO score of

		650
		675
		700
		750
		none of above

QUESTION 5

Which of the following purchase mortgages?I. FNMA, II. FHLMC, III. GNMA

		I and II only
		I and III only
		II and III only
		all of the above
		none of the above