Finance
A 'graduated payment mortgage' in Nebraska is characterized by:
APayments that gradually decrease over the loan term
BPayments that start lower and gradually increase over time, designed for borrowers expecting income growth✓ Correct
CVariable interest rate adjustments every 6 months
DBalloon payments that graduate in size
Explanation
A graduated payment mortgage (GPM) starts with lower initial payments that increase on a predetermined schedule, suitable for borrowers (like new professionals) who expect their income to grow in the future.
People Also Study
Related Nebraska Questions
- A Nebraska homeowner has a $220,000 mortgage. Their credit score qualifies them for a refinance at 6.25% (down from 7%). Monthly P&I on the old loan (7%, 25 years remaining) is $1,555. New monthly payment at 6.25% on $220,000 for 25 years would be approximately $1,497. Monthly savings are:Real Estate Math
- A Nebraska homeowner wants to refinance their $195,000 balance at a lower rate. The new lender charges $3,200 in closing costs. If the monthly payment savings are $85, the break-even point is approximately:Real Estate Math
- A Nebraska reverse mortgage allows seniors 62+ to receive payments from their home equity. Repayment is required when:Finance
- A Nebraska homeowner refinances their mortgage to a lower interest rate. Under federal law, they have a right of rescission for:Finance
- An adjustable-rate mortgage (ARM) typically has a lower initial interest rate than a fixed-rate mortgage because:Finance
- A balloon payment mortgage in Nebraska requires:Finance
- A Nebraska buyer obtains a 30-year, $220,000 mortgage at 6.75%. If the monthly P&I payment is $1,427, approximately how much interest is paid over the life of the loan?Real Estate Math
- A Nebraska seller owes $182,500 on their mortgage and the property sells for $325,000 with a 6% commission and $4,800 in closing costs. How much does the seller receive after paying off the mortgage, commission, and closing costs?Real Estate Math
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.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Math Concepts
Study This Topic
Practice More Nebraska Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Nebraska Quiz →