"What is the Annual Percentage Rate (APR) on a $150,000, 30-year mortgage at 5.0 percent interest if the lender charges 2.5 points on the loan and the borrower's expected holding period is 3 years? "

		5.46%
		5.22%
		5.00%
		5.93%

What is the monthly payment on a $145,000, 20-year mortgage at 2.5 percent interest?

		$604.17
		$775.11
		$768.36
		$9,301.33

What is the monthly payment on a $80,000, 25-year mortgage at 3.75 percent interest?

		$415.54
		$411.30
		$266.67
		$4,986.54

Adjustable-rate mortgages are typically only used for commercial real estate loans.

True

False

Consider a mortgage with an outstanding balance of $250,000 and a required monthly payment of $1,193.54. If interest accrues at an annual rate of 4.0 percent, how much of the next month's payment will be attributable to principal?

		$360.20
		$833.33
		$477.42
		$10,000.00

Consider a mortgage with an outstanding balance of $150,000 and a required monthly payment of $1,108.49. If interest accrues at an annual rate of 7.5 percent, how much of the next month's payment will be attributable to interest?

		$11,250.00
		$937.50
		$170.99
		$831.37

With a reverse mortgage the bank makes monthly payments to you instead of you making monthly payments to the bank.

True

False