Question

Given the following information of the mortgage pool that backs an MPT, what is the dollar amount of prepayment in month 32?

A) $1,250.00
B) $2,500.75
C) $3,750.50
D) $4,999.25

Answer 1

Without the initial balance, monthly payment amount, interest rate, amortization schedule, and prepayment conditions, it is not possible to accurately calculate the prepayment amount for month 32.

Step-by-step explanation:

To determine the dollar amount of prepayment in month 32, we would need information about the initial balance, the interest rate, the monthly payment, and the amortization schedule or a formula for the prepayment amount. Prepayment is the amount paid in addition to the scheduled monthly payment and often results in reducing the principal balance of the loan more quickly than scheduled.

In the absence of specific details on the amortization of the mortgage pool or prepayment rates, it is impossible to calculate the prepayment amount. An accurate answer would require additional data regarding the terms and conditions of the Mortgage-Backed Security (MBS) such as the initial loan amount, monthly payment, interest rate, and any prepayment conditions or patterns.