Explanation should include
- interest amortized over years
- simple interest
- interest with balloon payment
- graduated interest
- adjustable rate interest.
DPOR correlations: 18VAC135-20-400. 6 (Mortgages and deeds of trust); 18VAC135-20-400. 7 (Types of mortgages); 18VAC135-20-400. 14 (Real estate financing)
Process/Skill Questions:
- How is simple interest calculated?
- How do amortized payments differ from those of a straight loan?