If the Maximum Loan-To-Value Ratio That a Lender Will Accept

question 77

Multiple Choice

If the maximum loan-to-value ratio that a lender will accept on a house costing $100,000 is 90%, then the borrower must make a:

• A) minimum down payment of $10,000 plus closing costs.
• B) minimum down payment of $10,000 including closing costs.
• C) maximum down payment of $10,000 including closing costs and mortgage points.
• D) maximum down payment of $10,000.
• E) minimum down payment of $90,000 including closing costs.

Apply statistical concepts to hypothetical real-world scenarios.

Gain insight into assessing data distribution through the mean, median, range, and standard deviation.

Understand the definition, purpose, and components of a Learning Management System (LMS).

Identify and apply different needs assessment techniques such as organization, task, and person analysis in the context of training.

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Definitions:

Maturity

The specified time at which the principal amount of a bond or loan is due to be paid back to the lender.

Call Premium

The additional amount that must be paid over the par value by the issuer to redeem a callable security before its maturity date.

Default Risk Premium (DRP)

The additional yield that investors demand for holding a bond that has a risk of default over a risk-free bond.

Liquidity Premium (LP)

Additional return that investors demand for holding an asset that is not easily convertible to cash without a loss in value.