True or False 1. A PLAM mortgage reduces the lender’s interest rate risk (relative to a FRM). In general, an ARM has higher default risk than a FRM.
True or False 1. A PLAM mortgage reduces the lender’s interest rate risk (relative to a FRM). 2. In general, an ARM has higher default risk than a FRM. 3. Points are also known as reduction of mortgage yield. 4. A 5/1 ARM means that the mortgage is floating rate with an initial rate of 5%. 5. A mortgage with a balloon payment will have […]
