Question 13

Borrowers should consider refinancing their existing fixed rate mortgage (FRM) loan only when the market interest rates _____; and they should refinance _____ frequently as the refinance closing costs rise.

increase; less

increase; more

decrease; less

decrease; more

Question 12

All of the followings are able to reduce the total interest payment over the entire life of a fixed rate mortgage (FRM) loan EXCEPT _____.

Adopt a bi-weekly payment program, instead of the traditional monthly payment program.

Reduce the down payment of the loan.

Buying mortgage points (a.k.a. discount points).

Accelerate mortgage payment by paying more than the required minimum monthly payment

Question 24

Which one of the following bonds is likely to have the highest yield?

A newly issued 5-year Treasury note

A newly issued 10-year Treasury bond

A newly issued 5-year corporate bond

A newly issued 10-year corporate bond