Prepayment Penalties in Real Estate Loans
3 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the prepayment penalty for a 30-year fixed mortgage if paid off within the first 5 years?

  • 5% penalty of the remaining loan balance (correct)
  • 1% penalty of the remaining loan balance
  • 3% penalty of the remaining loan balance
  • 7% penalty of the remaining loan balance

    • Which type of mortgage has the 5-year stepdown prepayment penalty?

  • 7/6 ARM only
  • Both 30-year fixed and ARM mortgages (correct)
  • 5/6 ARM only
  • 30-year fixed only

    • What is the prepayment penalty for investment properties if the amount prepaid exceeds 20% of the original principal balance?

  • 1 month interest on the amount prepaid
  • 6 months interest on the amount prepaid (correct)
  • No prepayment penalty required
  • 3 months interest on the amount prepaid

    • More Like This

    Mortgage Prepayment and Default Risk Modeling
    30 questions

    Mortgage Prepayment and Default Risk Modeling

    ResoluteCombinatorics avatar
    ResoluteCombinatorics
    Bond Risks and Investment
    18 questions

    Bond Risks and Investment

    ClearLutetium avatar
    ClearLutetium
    Mortgage Clauses: Acceleration and Prepayment
    6 questions

    Mortgage Clauses: Acceleration and Prepayment

    TranquilNihonium avatar
    TranquilNihonium
    Mortgage Decisions and Risks Quiz
    36 questions

    Mortgage Decisions and Risks Quiz

    MarvellousFeynman avatar
    MarvellousFeynman
    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser