Question

(Mortgage Loans LC)

A first-time homebuyer is financing a house for $128,900. The buyer has to pay $300 plus 1.05% for a brokerage fee. How much are the mortgage brokerage fees?

$1,653.45
$1,353.45
$1,356.60
$1,365.45

Answer 1

1.05% of $128,900:
1.05% of $128,900 = 0.0105 × $128,900 = $1,354.45

$300 flat fee:
Our total brokerage fee = $1,354.45 + $300 = $1,654.45
So I believe we'd round it down to A.

Answer 2

nice :)

Answer 3

A bank advertises a 2/1 ARM at 2.75% with a 2/10 cap. What is the maximum interest rate that can be charged during the fifth year?

2.75%
4.75%
6.75%
8.75%

Answer 4

4.75% + 2% + 2% = 8.75%.