Refinancing of a mortgage is recommended when:
A: interest rates rise.
B: interest rates fall.
C: the escrow account balance declines.
D: two or more points are required by the lender at the time of closing.
E: the escrow account balance increases.
A: interest rates rise.
B: interest rates fall.
C: the escrow account balance declines.
D: two or more points are required by the lender at the time of closing.
E: the escrow account balance increases.
举一反三
- 13,The price of treasuries rises as interest rates fall, and the opposite is true when interest rates rise. Therefore, the best time to buy treasuries is when interest rates are relatively ______. (high/low)
- Call provisions will be exercised when interest rates _________ and bond values _________. A: rise; rise B: fall; rise C: rise; fall D: fall; fall
- Which of the following is true of mortgage interest rates? A: Mortgage rates are closely tied to Treasury bond rates, but mortgage rates tend to stay below Treasury rates because mortgages are secured with collateral. B: Longer-term mortgages have higher interest rates than shorter-term mortgages. C: Interest rates are higher on mortgage loans on which lenders charge points. D: All of the above are true. E: Only A and B of the above are true.
- In actual practice, short-term interest rates are just as likely to fall as to rise; this is the major shortcoming of the ________
- Milton Friedman contends that it is entirely possible that when the money supply rises, interest rates may _________ if the _________ effect is more than offset by changes in income, the price level, and expected inflation. A: fall; liquidity B: fall; risk C: rise; liquidity D: rise; risk