Which of the following loans may involve a balloon payment?
Selected Answer: b.
Partially amortized
Answers: a.
Fully amortized
b.
Partially amortized
c.
Interest-only
d.
Both B and C
Question 2
0 out of 1 points
Which of these loans would present the greatest level of risk to a lender?
Selected Answer: d.
80% LTV
Answers: a.
97% LTV
, b.
95% LTV
c.
90% LTV
d.
80% LTV
Question 3
1 out of 1 points
Which of the following allows a lender to increase the yield on a loan, enabling it to
charge a below-market interest rate?
Selected Answer: b.
Discount points
Answers: a.
Origination fee
b.
Discount points
c.
Administrative charges
d.
Prepayment penalty