1)For a reverse mortgage with 20-year term, loan amount $200,000, Interest rate 7%. There is no origination fee. What is the effective cost of the loan if the senior lives out the entire loan? Select one: a. 6.5% b. 5.4% c. 7% d. 4.5%

2)For a reverse mortgage with 20-year term, loan amount $200,000, Interest rate 7%. There is no origination fee. What is the effective cost if the senior passes away in 5 years? Select one: a. 4.5% b. 5.4% c. 7% d. 6.5%

3)What is the balloon payment for an $50,000, 6%, Balloon Mortgage if the term is 10 years and the amortization is 30 years? Select one: a. $2,345.94 b. $23,098.92 c. $35,234.09 d. $41,842.08

4)What is the monthly payment on an $200,000, 4%, 10-year interest-only mortgage? Select one: a. 948.23 b. $567.23 c. $666.67 d. $1,666.67

5)Which of the following is not a type of fixed rate mortgage? Select one: a. Balloon Mortgages b. Graduated payment mortgage (GPM) c. Negative Amortization Mortgages d. Interest-Only Mortgages

6)You bought a house with a 15-year mortgage with loan size $100,000 and interest rate 4%. Assuming the total transaction cost is $4,000 and your marginal income tax rate is 30%. What is your tax deduction for the 3rd month? Select one: a. $9,999.19 b. $99.19 c. $9.19 d. $999.19

7)You bought a house with a 15-year mortgage with loan size $100,000 and interest rate 4%. Assuming the total transaction cost is $4,000 and your marginal income tax rate is 30%. What is the annual effective cost of this loan after-tax if your loan will be outstanding for 1 month? Select one: a. 4% b. 52.92% c. 529.2% d. 5.92%