Which one of the following is NOT a reason why mortgage prepayments occur?

a)house securing the mortgage is sold

b)increase in interest rates

c)homeowner's spouse dies

d)homeowner faces job transfer

e)home is refinanced

2) What is the probability that a mortgage will be prepaid during a given year called?

a) mortgage reduction rate

b) amortization rate

c) filtration rate

d) prepayment rate

e) postponement rate