Q: What Percentage of down- payment do you have to give to the bank when buying a mortgage
A: Down Payment : It is the Initial lump sum amount which the borrower pay before sanction of loan.…
Q: Define the term amortized but write down its meaning in your own words in reference to amortized…
A: Since there are multiple questions it is only possible to solve the 1st part.
Q: Describe some of the motives and mistakes made by the mortgage brokers?
A: To market and attract new borrowers for the lenders Assessment of credit history of the borrowers.…
Q: What dangers are encountered by mortgagees and unreleased mortgagors when the property is sold…
A: Borrowers mortgage their properties or assets to provide guarantee for repayment of loan to the…
Q: balloon-payment mortgage. Why might a financial institution prefer to offer this type of mortgage?
A: Step 1 A balloon payment is a one-time payment that is bigger than usual at the expiration of the…
Q: in layman's terms, what is the diff. between a mortgage backed security and a credit default swap?
A: The borrowings made for purchasing fixed-assets like land, property, home and apartments is…
Q: Which of the following statements is not true about mortgages?
A: Mortgages are loans that are used to buy (or maintain) home, land or other types of real estate.
Q: Mortgages can be insured? Who insures mortgages and why? Can mortgages be sold? If so, who buys…
A: YES, mortgage can be insured. Mortgage insurance is an insurance policy that protects a mortgage…
Q: When would you would use a Personal Loan? Why would you choose a Personal Loan over other methods of…
A: “Since you have posted multiple questions, we will solve fist question for you. If you want any…
Q: Which of the following statements is not true about mortgages? The ending balance of an amortized…
A: Mortgage: A mortgage is considering as an instrument of debt, protected by the security of stated…
Q: A Mortgage Backed Bond (as opposed to a Mortgage Backed Security or Pass Through) removes mortgages…
A: The mortgage-backed bond is the security of the loan. The mortgage bond has to be registered and…
Q: The two types of personal loans are Installment Loans and Demand Loans. True False
A: Introduction : In simple words, personal loans refers to the loans which are given to the borrower…
Q: With a Fixed-Rate Mortgage, the ate risk. bears the interest bears the interest rate risk and with…
A: A mortgage is a type of loan that requires security. The mortgage can classify based on the interest…
Q: Which of the following situations are likely to result in higher loan defaults? Mortgages…
A: Loan default implies that borrower is not able to repay debt according to initial predetermined…
Q: Default risk is generally much greater for commercial mortgage loans than home loans because...
A: In finance default risk refers to that risk in which the borrower will not be able to make the…
Q: What went wrong with Subprime mortgages?
A: Mortgage is the value which is offered by banks and other institutions to the public of firms…
Q: Why is a mortgage a good debt?
A: Mortgage is typical loan given for purchase of home and ownership is reserved with financial…
Q: Explain the reason why the wraparound lender should be willing to make the loan at a rate that is…
A: Wraparound mortgage is a type of secondary financing in which the seller extends an additional…
Q: Which of the following statements is not true about mortgages? O The ending balance of an amortized…
A: Amortized loans are a type of loan which repays the loan by regular interval payments for a…
Q: Why might a wraparound lender provide a wraparound loan at a lower rate than a new first mortgage?
A: Introduction: Wraparound mortgage is a type of loan in which loans are given to borrowers, who is…
Q: Why is the rate of Fixed Rate Mortgage higher than Adjustable Rate Mortgage? O Liquidity risk…
A: The difference between Fixed rate mortgage and Adjustable rate mortgages is the interest rate risk…
Q: e that a friend tells you that you should not rush to pay off your mortgage early because you will…
A: Mortgages are paid by equal amounts of monthly payment that carry the payment of principal amount…
Q: Differentiate between a fixed-rate mortgage and avariable-rate mortgage.
A:
Q: is the importance of Mortgage Marke
A: Mortgage market is the place where you can get loans to buy the home and where you can buy or sell…
Q: Explain Junior Mortgages?
A: Junior mortgage: A junior mortgage may be a contract subject to a to begin with or a past contract…
Q: Describe the types of risk associated with mortgages.
A: Mortgage-backed securities: A mortgage backed security is an obligation that represents a claim on…
Q: What are mortgage discount points? When does it make sense to pay points on a loan? How can a…
A: Mortgage discount point are all such points which will be reducing the total amount of fees which an…
Q: In what ways is a CMBS structure different from a CMO backed by residential mortgages? Why
A: Mortgage-backed securities: The securities that are secured with mortgage or pool of mortgages are…
Q: xplain mortgage financing and how can someone afford a mortgage loan
A: Financing involves raising funds for undertaking business activities. Business activities includes…
Q: Explain Reverse Annuity Mortgages (RAMs) loan?
A: Reverse Annuity Mortgage (RAMs): A reverse annuity mortgage is a kind of home loan in which an…
Q: Discuss the two theories of mortgage default. What are the most important factors that influence the…
A: Mortgage Default In simple term mortgage default which is described as default from the borrower to…
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- Explain the difference between conventional mortgages, reverse mortgages, and second mortgages.Explain the use of a balloon-payment mortgage. Why might a financial institution prefer to offer this type of mortgage?Give an example of a real estate mortgage and chattel mortgage. What are the obligations being secured by the mortgages?
- Explain mortgage financing and how can someone afford a mortgage loanDefine the term amortized but write down its meaning in your own words in reference to amortized mortgages. Explain what an interest only mortgage is and who is eligible for these types of mortgages Is a mortgage contract an asset or a liability to the lender? Are all mortgages secured debt instruments? Mortgages can be insured? Who insures mortgages and why? Mortgage companies, savings institutions and commercial banks originate mortgages. Do mortgage brokers originate mortgages? If not, what do they do? Can mortgages be sold? If so, who buys mortgages?What are mortgage discount points? When does it make sense to pay points on a loan? How can a borrower make a decision?
- Mortgages can be insured? Who insures mortgages and why? Can mortgages be sold? If so, who buys mortgages?If you were applying for a home mortgage loan today, would a lender viewyour debt-to-assets ratio favorably? Why or why not?What is private mortgage insurance? How does it work to protect a lender from risk? What are the three 'C's' of mortgage underwriting? What is one way in which each of the 'C's' is measured?
- Explain Incremental Borrowing Cost versus a Second Mortgage?Which of the following is a feature of a home equity loan? Group of answer choices a. The interest rate on a home equity loan is higher than that on other loans. b. The interest paid on a home equity loan is usually tax deductible. c. A home equity loan is generally the first mortgage loan. d. A home equity loan is a single-payment loan. e. A home equity loan is an unsecured loan.Explain the difference between calculating simple interest and calculating the interest for a mortgage.