Homeowners with tax free income in the form of a loan

Assignment Help Financial Management

Reference no: EM131065651

1) In the last phase of applying for a loan an appraisal of the one occurs to determine the value of the home based on ________features condition? a. economic climate b. style of architecture c. location d. square footage e. yard size

2) In the early years of the loan most of the money paid goes to (is applied to) paying _______ a. principle b. interest c. taxes d. yard size

3) A ______ cap restricts the amount by which the interest rate can increase or decrease during an adjustable rate mortgage term a. equity b. interest c. rate d. payment

4) Payment caps keeps the payment on an arm at a given level this can result in a loss of ________ this increase the balance own on loan is called negative amortization. a. principle b. interest c. appreciation d. equity

5. Reserve mortgages can help homeowners with tax free income in the form of a loan that is paid back with interest added when the home is sold or the homeowner dies. the homeowner needs to be wary of _______ fees

6. A _______ deed guarantees that title the buyer of a home receives is good and certifies the seller is the true owner of the property a. quit calm b. certified c. warranty d. guaranteed

7. 60 money deposited with the lending financial institution for the payment of property taxes and homeowners insurance is held as an _______ a. down payment b. closing costs c. escrow account d. trust account

Reference no: EM131065651

Questions Cloud

What is the interest rate per month for the loan : George bought a car for $26,500. He made a down-payment of $4,500 and financed the rest on a 5-year term with a monthly payment of $575. (a) What is the interest rate per month for the loan? (b) What is the nominal interest per year? (c) What is the ..

What will be the dividend yield and capital gains yield : Consider a stock that most recently paid a dividend of $0.75. The company plans toincrease dividends by 50% each year for the next 3 years, then by 20% each year for 4years, and then level off to a permanent growth rate in dividends of 6%. What are d..

What is this bonds capital gains yield this year : A bond has face value of $1,000, a coupon rate of 12%, YTM of 9%, and matures in 20 years. The bond pays interest semiannually. What is the value of this bond? What is the current yield for this bond this year? What is this bond's capital gains yield..

What must the coupon rate be on bonds : Dunbar Corporation has $1000 face value bonds on the market with 12years to maturity, a YTM of 8%, and a current price of $1,226.08. The bonds make annual payments. What must the coupon rate be on Dunbars bonds?

Homeowners with tax free income in the form of a loan : In the last phase of applying for a loan an appraisal of the one occurs to determine the value of the home based on ________features condition? A ______ cap restricts the amount by which the interest rate can increase or decrease during an adjustable..

Zero coupon bond at the beginning of the year : You buy a zero coupon bond at the beginning of the year that has a face value of $1,000, a YTM of 7 percent, and 12 years to maturity. You hold the bond for the entire year. Assume semiannual compounding. How much interest income will you have to dec..

What is the intrinsic value of this stock : LA Diversified Inc. recently paid its annual dividend ($3.00). Dividends have consistently grown at a rate of 3.80%. The stock has a beta of 0.88. The current risk-free rate is 2.40% and the market risk premium (RM - RF) is 8.50%. Assuming that CAPM ..

Making capital budgeting decisions-add to shareholder value : A company is considering two mutually exclusive expansion plans. Plan A requires a $41 million expenditure on a large-scale integrated plant that would provide expected cash flows of $6.55 million per year for 20 years. Calculate the crossover rate w..

What is the intrinsic value of this preferred stock : Burnham & Company's $75.00 par-value preferred stock pays an annual dividend of $11.00. The stock has a beta of 0.85, the current T-bill rate is 2.40%, and the S&P 500's expected return (RM) is 11.30%. Assuming that CAPM holds, what is the intrinsic ..

User Account

All Pages