Free CTFA Exam Braindumps (page: 64)

Page 64 of 113

Margin on an adjustable rate mortgage is the percentage point a lender adds to the index rate to determine the rate of interest. It is important for home buyers to understand all of the following basic features of an ARM Except:

  1. Adjustment period
  2. Index rate
  3. Payment caps
  4. Marginal rate of return

Answer(s): D



It occurs when a principal balance on a mortgage loan increases because the monthly loan payment is lower than the amount of monthly interest being charged. What is it?

  1. Negative amortization
  2. Positive amortization
  3. Amortization imbalance
  4. Payment gap

Answer(s): A



Two-step ARM is an adjustable rate mortgage with just two interest rates. One for the first years of the loan and the higher one for the remaining term of the loan:

  1. 5 years
  2. 6 years
  3. 5 to 7 years
  4. 3 years

Answer(s): C



Fixed rate mortgages are popular with home buyers who plan to stay in their homes for at least years and want to know what their payment will be.

  1. 5 years
  2. 6 years
  3. 5 to 7 years
  4. 3 years

Answer(s): C



Page 64 of 113



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JUAN commented on June 28, 2023
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UNITED STATES
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JUAN commented on June 28, 2023
aba questions to practice
UNITED STATES
upvote

Alo commented on November 12, 2018
we shall see, just downloaded. Will report back
Anonymous
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