QUESTIONS Under the PSA Prepayment Model, a borrower is more likely to pre-pay their mortgage in the 40th month than in the 30th month, True False QUESTION 6 Under the Standard Default Rate Assumption model, the highest rate of default in mortgages is at the beginning True False QUESTION 7 Which of the following mortgages will have the largest monthly payment? Fully amortizing 30 year FRM, annuali - 3%, mortgage amount $200,000 Fully amortizing 25-year FRM, annuali - 4%, mortgage amount 5200,000 O 30-year FRM, annuali - 3%, mortgage amount $200,000 with a balloon payment of $20,000 at the end of the loan Fully amortizing 30-year FRM, annuali 4%, mortgage amount $200,000 Fully amortizing 30-year FRM, annual i = 2%, mortgage amount $200,000