Lesson 4

*Structure Practice*

A. Rewrite the following story in the present

1. Sam is making a deposit
ü Sam has made a deposit

2. He is filling out a deposit slip
ü He has feeld out a deposit slip

3. He is bringing the slip and his money to the teller
ü He has brought the slip and his money to the teller

4. The teller is taking the deposit from Sam
ü The teller has taken the deposit from Sam

5. The teller is saying “ thank you “
ü The teller has said “ thank you “

B. Rewrite the following paragraph in the present perfect

1. Tom and Alice buy a car
ü Tom and Alice bought a car

2. They get an auto loan
ü They have got an auto loan

3. The bank gives them the loan at 16%
ü The has given them the loan at 16%

4. Interest rates rise a lot
ü Interest rates have risen a lot

5. They tell me the loan is for three years
ü They have told me the loan is for three years

C. Select the form of the verb that correctly completes each sentence

1. The price of gasoline is risen(b) steadily

2. My bank has not yet begun(c) to offer variable-rate mortagages

3. Hasn’t she spoken(a) with the people in the loan department yet?

4. Since he defaulted on his mortgage payments, the bank taken(b)
possession of his house.

5. Does he hold(a) a good job?

6. How many checks did you write(a) this month ?

7. We’ve known(a) about variable rate mortgages for a long time.

8. They say that interest rates are falling(b)

* Building Sentences *

A. Complete each of the following sentences with the appropriate preposition

1. He’s teller in/at the Riverside Bank

2. We want to get financing for/to a new house

3. I’ve learned a lot of mortgages

4. They paid the same rate of thirty years

5. The bank insists of variable-rate mortgages.

B. Rewrite each og the following sentences replacing must with be forced to

1. The bank must close
ü The bank is forced to close

2. He must accept a variable-rate mortgage
ü He is forced to accept a variable-rate mortgage

3. We must raise our fees
ü We are forced to raise our fees

4. I must report this to the manager
ü I am forced to report this to the manager

5. They must apply for a loan at a different bank
ü They are forced to apply for a loan at a different bank

* Reading Plus *

Question


1. What index does the Brookline Savings Bank use to determine current
mortgage rates?
The index used by the Brookline Savings Bank is the Federal Home Loan
Bank Board’s Conventional Home Mortgage Closing Rates, All Lenders/All
Home ( U.S. Effective Rate) as most recently published in the FHLBB
First District Facts, rounded to the nearest ¼ of 1%.

2. What causes changes in the cost of money that a savings bank lends ?
Cause the cost of money a savings bank lends to you changes with the rate of interest it pays its depositors, the VRM is an equitable method of financing for both home buyers and lenders

3. How long is guaranteed-rate period ?
Guaranteed-rate period is ranging from six months to five years.

4. By how much may the bank increase your mortgage rate?
The bank increase my mortgage rate if the indeks is ¼% or more above my mortgage rate, an increase may be made at the option of the bank.

5. Must the bank increase your mortgage rate if the FHLBB rate increases?
If it decreases?
No. If the FHLBB rate is ¼% or more above my mortgage rate, an increase may be made at the option of the bank. If the FHLBB rate is is ¼% or more below my mortgage rate, my mortgage rate must be decreased by the bank.

6. Is there any limit to how high your rate can go over the life of the mortgage?
There is,however, no limit to how high or low my rate can go over an extended period of time.

7. When does the bank inform the mortgage about changes in his or her mortgage rate ?
The bank inform the mortgage about changes in his or her mortgage rate at least 30 days before the new rate is go into effect.

8. Study the example of the $50.000 loan
a. What was the initial rate ?
The initial rate was 9.10 %

b. How many increases were there over these five years ?
There over these five years is 6 increases from 12 months until
42 months

c. How many decreases ?
Decreases is 3 from 48 months until 60 months

d. How much did monthly payments rise over the five years ?
Monthly payments rise over the five years is $54,71