Finance
Indiana's Housing Finance Authority (IHCDA) issues mortgage revenue bonds to fund:
ACommercial real estate developments only
BBelow-market rate mortgage loans for first-time homebuyers and affordable rental housing development✓ Correct
CInfrastructure improvements
DAll residential mortgage loans in Indiana
Explanation
IHCDA issues tax-exempt mortgage revenue bonds to fund below-market interest rate mortgage loans for eligible first-time homebuyers and to finance affordable rental housing developments in Indiana.
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Key Terms to Know
Adjustable-Rate Mortgage (ARM)
A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Math Concepts
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