Question
In: Finance
Insurance that protects the lender in the event that the borrower does not repay the mortgage...
Insurance that protects the lender in the event that the borrower does not repay the mortgage is called:
Group of answer choices
good faith insurance.
homeowners’ insurance.
mortgage insurance.
settlement insurance.
Solutions
Expert Solution
Insurance that protects the lender in the event that the borrower does not repay the mortgage is called Mortgage Insurance.
In other words Mortgage insurance is an insurance that protects a mortgage lender in case the borrower defaults on payments or is unable to meet the obligations of the mortgage
jeff jeffy answered 2 years agoRelated Solutions
Property pledged to a lender to guarantee payment in the event the borrower defaults is called...
Property pledged to a lender to guarantee payment in the event
the borrower defaults is called _____.
lost property
liquid assets
insolvency
collateral
The main type of mortgage loans that shift interest-rate risk from the lender to the borrower...
The main type of mortgage loans that shift interest-rate risk
from the lender to the borrower is the
A) FHA mortgage
B) bi-weekly mortgage.
C) adjustable-rate mortgage.
D) conventional mortgage.
which mortgage is riskier for lender? fixed rate mortgage to adjustable rate mortgage? And why does...
which mortgage is riskier for lender? fixed rate mortgage to
adjustable rate mortgage? And why does the adjustable rate mortgage
have lower expected yield?
A borrower took out a loan of 100,000 and promised to repay it with a payment...
A borrower took out a loan of 100,000 and promised to repay it
with a payment at the end of each year for 30 years.
The amount of each of the first ten payments equals the amount
of interest due. The amount of each of the next ten payments equals
150% of the amount of interest due. The amount of each of the last
ten payments is X.
The lender charges interest at an annual effective rate of
10%.
Calculate...
A borrower took out a loan of 100,000 and promised to repay it with a payment...
A borrower took out a loan of 100,000 and promised to repay it
with a payment at the end of each year for 30 years.
The amount of each of the first ten payments equals the amount
of interest due. The amount of each of the next ten payments equals
150% of the amount of interest due. The amount of each of the last
ten payments is X.
The lender charges interest at an annual effective rate of
10%.
Calculate...
Why might a mortgage lender require you to have home insurance? What is the difference between...
Why might a mortgage lender require you to have home insurance?
What is the difference between actual cash value and replacement
value? Which one is more valuable?
Explain the advantage and disadvantages of credit to the borrower, the lender and the entire economy...
Explain the advantage and disadvantages of credit to
the borrower, the lender and the entire economy of a country
Suppose that a borrower and a lender agree on the nominal interest rate to be paid...
Suppose that a borrower and a lender agree on the nominal
interest rate to be paid on a loan. Then inflation turns out to be
lower than they both expected.
Is the real interest rate on this loan higher or lower than
expected?
Use your own “made-up” figures for nominal interest rate,
expected inflation rate and actual inflation rate to explain your
answer in part “a”?
Does the lender gain or lose from this unexpectedly low
inflation? Does the borrower...
The lender and borrower expect inflation rates of 5% in 2019,4.5% in 2020, and 3%...
The lender and borrower expect inflation rates of 5% in 2019,
4.5% in 2020, and 3% in 2021. What is the geometric average of the
expected inflation rates? If the lender requires a real rate of
interest of 5%, what nominal rate would (s)he set for a 3 year loan
(assume the loan is structured such that principle and interest are
due in one lump sum at loan maturity)?
Is a currency swap contract a debt obligation that involves a borrower and a lender? Why...
Is a currency swap contract a debt obligation that involves a
borrower and a lender? Why or Why not?
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