### What is an end loan used for? - [ ] To secure extra financing for a business expansion - [x] To pay off an interim construction loan - [ ] To finance a new car purchase - [ ] To cover daily business operational costs > **Explanation:** An end loan is a permanent, long-term loan that begins after construction is completed. It is primarily used to pay off interim financing, such as a construction loan or combination loan. ### After what stage does an end loan begin? - [ ] Before construction starts - [ ] During the construction process - [x] After construction is completed - [ ] Before getting a construction loan > **Explanation:** An end loan begins after construction has been completed. It moves the borrower from an interim financing stage to a more permanent financing arrangement. ### What is one common benefit of an end loan for borrowers? - [ ] They usually waive the repayment of the principal - [ ] They offer variable interest rates - [x] They allow for the consolidation of interim loans into one payment - [ ] They eliminate the need for any interest payment > **Explanation:** One common benefit of an end loan is that it can pay off several interim loans and construction loans, allowing the borrower to consolidate the loans into one lender and one payment. ### Are end loans usually interest-only loans? - [ ] Yes, they are primarily interest-only loans - [x] No, they involve paying both interest and principal - [ ] Yes, and they do not require full repayment - [ ] No, they have only principal payments > **Explanation:** Unlike most interim loans, which are typically interest-only loans, end loans involve both interest and principal payments. Over time, the interest will be paid in full, and the principal on these loans will begin to reduce. ### When can the principal and accrued interest on most interim loans be paid in full? - [ ] Whenever the borrower decides to pay - [ ] At the beginning of the loan term - [ ] During the construction phase - [x] When funds from an end loan become available > **Explanation:** The principal and the accrued interest on most interim loans may only be paid in full when the funds from an end loan become available. ### What happens to the interest rate of end loans over time? - [ ] It remains variable and fluctuates - [ ] It starts rolling over into the principal - [ ] It stops accumulating after a certain point - [x] It is fixed and will eventually be paid in full > **Explanation:** Although there will be an interest rate on end loans, it is for a fixed amount. At some point in the future, the interest will be paid in full, and the principal on these loans will begin to reduce. ### Why are end loans usually taken out? - [x] To transition from an interim loan to a long-term loan - [ ] To avoid paying any financial charges - [ ] To increase construction costs - [ ] To diversify investment options > **Explanation:** End loans are taken out to transition from an interim loan, like a construction loan, to a long-term permanent loan. This shifts the financial arrangement to a more stable state. ### Which type of loans do end loans often succeed? - [x] Construction loans - [ ] Auto loans - [ ] Education loans - [ ] Personal loans > **Explanation:** End loans often succeed construction loans. These loans provide the long-term funding needed to pay off the interim financing obtained during the construction process. ### What advantage does having a fixed amount of end loan interest provide? - [ ] It allows for principal repayment to be deferred indefinitely - [ ] It reduces monthly payments immediately - [x] It ensures that the interest will be paid off and the principal amount will start reducing over time - [ ] It offers reduced interest rates periodically > **Explanation:** Having a fixed amount of end loan interest ensures that at some point the interest will be fully paid, allowing borrowers to start reducing the principal amount. ### What happens to interim loans when an end loan is obtained? - [ ] Interim loans become void and forgiven - [x] Interim loans are paid off in full - [ ] The interest on interim loans stops accruing - [ ] Interim loans convert into stock options > **Explanation:** When an end loan is obtained, the funds from the end loan are used to pay off interim financing, such as construction loans, in full.