Florida Real Estate Exam 13-(Types of Mortgages and Sources of Financing) Questions with Complete Solutions (Latest 2025)
- If the loan is $115,000 at 10% interest for 30 years and the
- What is the monthly balance after the second payment? -
- subtract for amortizing a loan
- Subtract the first month's principal payment. $115,000-
payment is $1009.21 per month (P &I), what is the principal balance after one payment?then
Correct Answers ✅1. use steps -Multiply - divide - subtract
$115,000 x 10%= $11,500 interest per year. Divide by 12 to get monthly interest $11,500 ÷ 12= $958.33 per month interest.Subtract $958.33 from the total monthly payment of $1009.21= $50.88 is the amount of the first monthly principal payment.
$50.88 which leaves a loan balance at the beginning of the second month of $114,949.12.Take $114,949.12 x 10%=11,494.91. Divide by 12 to get monthly interest = $957.91 1 / 4
Florida Real Estate Exam 13-(Types of Mortgages and Sources of Financing) Questions with Complete Solutions (Latest 2025) Subtract $957.91 from the principal and interest payment of $1,009.21. The principal paid is $51.30 Subtract $51.30 from the balance of
$114,949.12=$114,897.82
What does amortized mean? - Correct Answers ✅Put to death What is an amortized loan? - Correct Answers ✅where regular monthly principal and interest are paid throughout the whole loan period.A loan of $350,000 is obtained at 8% interest for 30 years, what is the monthly principal and interest? - Correct Answers ✅$2,568.18 per month (30 years x 12 months per year) also known as a fully amortized, fixed rate mortgage What will an amortized loan pay off? - Correct Answers ✅the loan with interest over the lifetime of the loan 2 / 4
Florida Real Estate Exam 13-(Types of Mortgages and Sources of Financing) Questions with Complete Solutions (Latest 2025) What is the highest part of the payment in an amortized mortgage? - Correct Answers ✅the amount of interest How can amortized mortgages be paid? - Correct Answers ✅monthly ore bi monthly What is another word for a partially amortized mortgage? - Correct Answers ✅a Balloon payment When are balloon payments sometimes used? - Correct Answers ✅used by borrowers who are using the loan for a short term until they inherit a large sum of money or have other financial gains What is an ARM? - Correct Answers ✅(adjustable rate mortgages), this type of loan means that the interest rate can fluctuate up or down. It is always tied to some type of financial index; increases are capped for each period and for the term of the loan What is the interest rate of the loan usually? - Correct Answers ✅the index plus a premium called the margin 3 / 4
Florida Real Estate Exam 13-(Types of Mortgages and Sources of Financing) Questions with Complete Solutions (Latest 2025) The rate of interest on the loan goes up or down, depending on what? - Correct Answers ✅the index, margin, period of adjustment and caps.What do Period Caps do? - Correct Answers ✅limit the amount of interest rate that may be charged during any one adjustment period. For example, if the loan has a 2% cap, it can only go up 2% during any one adjustment period, or down a maximum of 2%.What is a life time cap over? - Correct Answers ✅the period of the loan Is it possible to have negative amortization? - Correct Answers ✅YES
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