Multiple Choice
Identify the
letter of the choice that best completes the statement or answers the question.
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1.
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(34) Semiannual property taxes of $450 were paid
only for the first half of the year. The property sold on July 11 and closed on September 19. If the
taxes were prorated between the buyer and seller as of the date of sale, which of the following is
true?
a. | $252.50 CS, DB | c. | $27.50
DS, CB | b. | $252.50 DS, CB | d. | $497.50 CS,
DB |
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2.
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(35) A buyer negotiated a $75,000 loan at 8 percent
interest for 30 years, with the first payment due in arrears on April 1. If the closing takes place
on February 26, how much interest must the buyer pay on the day of closing?
a. | $566.78 | c. | $56.68 | b. | $656.78 | d. | $66.68 |
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3.
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(36) The buyer assumed a loan of $50,000 at 8.25
percent interest. Payments are due on the first of the month, in arrears. The last payment was made
on April 1 and the closing took place on April 20. Which of the following is true?
a. | $119.60 CS, DB | c. | $229.20 CS, DB | b. | $119.60 DB,
CS | d. | $229.20 DS, CB |
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4.
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(37) The buyer had a 20 percent down payment on a
property she purchased for $89,500. She must also pay a 1 percent origination fee, $350 for title
insurance, and one discount point. How much money will the buyer owe at the closing?
a. | $18,966 | c. | $17,423 | b. | $19,682 | d. | $20,350 |
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5.
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(38) After the borrower made his payment on
September 1, his loan balance was $12,259. His monthly payment is $124.34 per month paid in arrears
on the first of the month. The interest rate on the loan is 9 percent. On October 1, he paid the
lender for the October 1 payment, then paid off the entire mortgage balance. If the prepayment
penalty was 2 percent, his prepayment penalty charge was approximately
a. | $244.53. | c. | $232.40. | b. | $245.18. | d. | $247.93. |
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