Exam 22: Mortgage Market and Mortgage Instruments

The initial payments on a graduated payment mortgage are ____ than on a fixed rate mortgage and then they ____ over a specified time period before leveling off.

Until 1980 households were the leading mortgage borrower in the United States but they were passed by business mortgage borrowers in 1981 and continued to rank in second place through 2000, according to your text.

Ginnie Mae guarantees both the principal and interest payments on mortgages in its pools.

The loan mortgage debt outstanding in the United States at year-end 2009 was over:

In general a home mortgage should be refinanced when the discounted after-tax savings exceed the after-tax refinancing cost.

The median purchase price of a conventional single-family residence in the U.S. in 2009 was just over $250,000.

This type of mortgage instrument is created by tying the mortgage contract interest rate to another interest rate which is sensitive to current supply and demand conditions in the open market. This instrument is the:

Prior to World War II, individuals were the dominant mortgage investors.

Fannie Mae's asset portfolio soared in value during the 2007-2009 period.