Multiple Choice
One hundred identical mortgages are pooled together into a pass-through security.Each mortgage has a $150,000 principal,a fixed annual interest rate of 8 percent (paid monthly) ,and is fully amortized over a term of 30 years.
What is the monthly payment on the mortgage pass-through if a 44 basis point servicing fee is deducted monthly?
A) $105,499.
B) $114,700.
C) $11,340.
D) $1,055.
Correct Answer:
Verified
Correct Answer:
Verified
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