REAL 4000 UGA; Questions & Answers 100%
Solved
What does the value of a property mortgage depend on Correct answer-1. Magnitude of
expected cash flows
2. Timing of expected cash flows
3. Riskiness of expected cash flows
The possibility that the actual outcome will vary from what was expe...
REAL 4000 UGA; Questions & Answers 100%
Solved
What does the value of a property mortgage depend on Correct answer-1. Magnitude of
expected cash flows
2. Timing of expected cash flows
3. Riskiness of expected cash flows
The possibility that the actual outcome will vary from what was expected when the asset was
purchased. Correct answer-Risk
fixed amount of money paid or received at the end of every period Correct answer-
Ordinary annuity
future cash inflow or outflow occurring only once Correct answer-lump sum payment
What are the four time Value of money operations Correct answer-Compounding
Operations
1. Future value of a lump sum
2. Future value of an annuity
Discounting Operation
1. Present value of a lump sum
2.Present value of an annuity
What affects value Correct answer-required yield
, REAL 4000 UGA; Questions & Answers 100%
Solved
What is the highest degree of control you can have Correct answer-Purchase price
loans for which the interest rate does not change over the life of the loan Correct
answer-Fixed rate
more common when rates in the market are not stable as they protect lender from interest rate
risk Correct answer-adjustable rate
Why would you take an adjustable rate? Correct answer-it allows the borrower to secure
lower rates for the short term
Two elements of a mortgage loan Correct answer-1. The note
2. The mortgage
exact terms of financial obligation
1. Where financial terms are discussed
2. Interest rate
3.Fixed rate
4.Amortization Correct answer-The Note
, REAL 4000 UGA; Questions & Answers 100%
Solved
A pledge of property as a security for the note. Formal conveyance of rights to disposition
Correct answer-The mortgage (DOT)
Various arrangements for fixed-rate loan Correct answer-1. Fully Amortized
2. Partially Amortized
3. Interest only
4. Negative Amortization
Fully amortized Correct answer-Most Residential Consumer Real Estate Loans
Partially amortized Correct answer-1. Most commercial Real Estate loans
2. Term for amortization
3. Term to maturity (paid off before amortization term)
Interest only (NON AMORTIZING sometimes called a bullet loan) Correct answer-1.
balloon payment at tend UNLESS converting to amort loan
2. Mostly commercial but sometimes residential loans
Negative amortization ( principal rising, not falling) Correct answer-purposeful in reverse
mortgage
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