1)The acceleration clause increases risk for the lender.

True/False

2)A 10/1 mortgage has a variable rate for the first 10 years and then the rate is fixed for the remainder of the term of the loan.

True/False

3)The mortgage serves as a security for the promissory note.

True/False

1)One way to avoid foreclosure and the negativity it can create on one's personal credit or a company's business but not retain ownership is

A.Bankruptcy

B.A modification/renegotiation

C.A deed in lieu of foreclosure

D.loan origination market

1)If an ARM has a margin of 2.5 and the start rate is 4% and caps of 2/2/5 and the index at the first adjustment is 5, what is the rate?

A.6%

B.7.5%

C.9%

D.6.5%