1. The incremental cost of borrowing may also be referred to as the marginal cost of borrowing. (True or False) 2. Which

[answerhappygod]

1. The incremental cost of borrowing may also be referred
to as the marginal cost of borrowing. (True or False)
2. Which of the following is a form of owner
financing?
a. Land contract
b. Jumbo mortgage
c. Primary mortgage
d. Package mortgage
3. You borrowed $385,000 with a 30- year,fully amortized
mortgage ten years ago.The rate on the loan is 3.625%and you
have made 120 payments on the loan.A mortgage broker has identified
a lender that will refinance your existing loan with a new 20-year
mortgage with a rate of 2.75%. The upfront refinancing costs
consist of 1.85 points.What is NPV of the refinancing if you
believe that you will repay the loan over its full term?
4. I just borrowed $267,000 at 2.125%for 15-years.My lender
is looking to sell my loan and the market rate of interest is
1.53%.What is the market value of my loan assuming that it is
repaid with a lump sum after 72 regular payments?
5. You are looking to purchase a house for $500,000 with
either a 70%or 80%LTV loan (both 30-year mortgages). The
70%LTV loan has a rate of 2.75%with 1 point due at closing and the
80%LTV loan has a rate of 2.875%with 1.25 points due at
closing.What the marginal borrowing cost of the 80%LTV loan in
relation to the 70%LTV loan if you plan to pay off the loan after
48 months?
Please input your answer such that 14.54%would
be 14.54.