Gold Coast Chapter 13 Questions And Answers 100% Verified A+ Guaranteed

If interest for six months of a rate of 8% equals $200, what is the principal amount of the loan? {Ans: $5,000}Which of the following statements best describes the secondary mortgage market? {Ans: (b) It is where loans originated in the primary market are sold.}With an adjustable rate mortgage, if a payment is not sufficient to cover the interest amount due, the unpaid interest amount may be added to the loan balance. What is the term used to describe this situation? {Ans: negative amortization}Which of the following statements regarding types of mortgage loans is correct? {Ans: The FHA insures loans. VA loans are guaranteed.}The federal national mortgage association was originally formed to purchase what type of loans? {Ans: FHA}What is the role of the federal housing administration? {Ans: (b) Loan insurance}