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Residential Real Estate Loans: Types & Features

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question 1 of 3

Which of the following residential real estate loans requires a large final payment at the end of the term?

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1. In what kind of amortization do the principal and the interest amounts remain constant with every loan payment?

2. What makes a hybrid loan different than a regular adjustable rate mortgage?

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About This Quiz & Worksheet

Assess your understanding of residential real estate loans with the quiz and worksheet. Questions on the quiz address the characteristics of these loans and the responsibilities of the parties involved.

Quiz & Worksheet Goals

Use these study assessments to:

  • Determine a loan that has a large payment when the term is up
  • Analyze an amortization in which the principal and interest amounts stay static with each payment
  • Understand the difference between a regular adjustable rate mortgage and a hybrid loan
  • Explain the timing of interest payments in a mortgage-style amortization
  • Recognize what occurs when the interest payment only option of an interest only mortgage is over

Skills Practiced

Practice the following skills:

  • Reading comprehension - ensure that you draw the most important information from the related lesson on residential real estate loans
  • Interpreting information - verify that you can review information regarding amortization and interpret it correctly
  • Knowledge application - use your knowledge to answer questions about mortgages and interest payments

Additional Learning

Use the lesson named Residential Real Estate Loans: Types & Features for more information on this subject. The lesson addresses the following objectives:

  • Define amortization and reamortization
  • Understand a fixed rate loan
  • Explain an Adjustable Rate Mortgage
  • Analyze index values
  • Understand hybrid and interest only loans
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