NC-REX Review Test : Quiz 14 & 15
If the monthly interest payment at 6% is $1,050, the principal amount of the loan is
$210,000 1,050*12=12,600 annual interest 12,600/.06=210,000
f a loan balance is $213,500 and the annual interest rate is 5½%, what is the amount of the next monthly interest payment?
$978.54
A homebuyer financed his home five years ago with a high loan-to-value, fixed-rate loan. Due to a job transfer, the owner must move, but his home has suffered significant depreciation in value since purchase. Which of the following is a legal way to handle the disposition of the property?
1. Ask the lienholder to participate in a short sale transaction. 2. The seller uses other assets to make up the shortfall between the outstanding mortgage loan balance and the proceeds from the sale. 3.The owner can convert the house to a rental property and use the rent to make mortgage payments.
FNMA's activities include buying and selling of all of the following :
1. FHA and VA mortgages. 2. conventional mortgages. 3. mortgages at discounted values.
the following statements are TRUE regarding the secondary mortgage market?
1. Fannie Mae can purchase conventional, FHA, and VA loans. 2. Freddie Mac originally purchased conventional loans primarily from savings associations. 3. Non-conforming loans do not comply with secondary market guidelines.
When compared with a 30-year payment period, taking out a loan with a 20-year payment period would result in all of the following:
1. faster amortization. 2. higher monthly payments. 3. quicker equity buildup.
All the following might be part of an adjustable rate mortgage:
1. payment cap. 2. anniversary cap. 3. lifetime cap.
A deed of trust differs from a mortgage in all of the following ways ?
1. the number of parties involved in the loan. 2. the redemption rights allowed after foreclosure. 3. the time period permitted to cure a default.
An eligible veteran is under contract to purchase a home for $80,000 that he wants to finance with a VA-guaranteed 100% loan-to-value loan. Four weeks after contract formation, a certificate of reasonable value (CRV) for $77,000 was issued for the property. In this situation, the veteran may consider any of the following options :
1. withdrawing from the transaction without penalty. 2. purchasing the property with an additional $3,000 cash from his own funds. 3. negotiating with the seller to reduce the sales price $3,000.
A borrower obtained a $7,000 second mortgage loan for five years at 6% interest per annum. Monthly debt service payments were $50. The final payment included the remaining outstanding principal balance. What type of loan is this?
A partially amortized loan.
A developer had a mortgage loan on an entire development. When a lot was sold to a buyer, the developer was able to deliver title to that lot free of the mortgage lien by utilizing a partial release. What type of loan did the developer have?
Blanket mortgage.
A mortgage broker generally offers which of the following services?
Bring borrower and the lender together.
The federal agency that is tasked with the oversight of the public welfare in connection with lending practices is the?
Consumer Financial Protection Bureau.
Which of the following statements is NOT TRUE regarding the secondary mortgage market?
Ginnie Mae is associated with conventional loans.
Which of the following pairs of terms is considered MOST synonymous?
Interim financing and construction loan.
The loan amount expressed as a percentage of the value of the real estate offered as collateral is the?
Loan-to-value ratio.
Which of the following is NOT a required chief disclosure for compliance with the Truth-in-Lending Act?
Loan-to-value ratio.
A mortgage loan that is secured by both real and personal property is called a?
Package Loan.
The trustee foreclosed on a property after the borrower defaulted on the loan payments. At the foreclosure auction, however, the house sold for only $129,000. The unpaid balance of the loan at the time of the sale was $140,000. What must the lender do to recover the $11,000 the borrower still owes?
Seek a deficiency judgment.
Which of the following is TRUE about an installment land contract?
The buyer is given immediate possession and use of the property.
A homebuyer financed his home five years ago with a high loan-to-value, fixed-rate loan. Due to a job transfer, the owner must move, but his home has suffered significant depreciation in value since purchase. Which of the following is NOT a legal way to handle the disposition of the property?
The owner could abandon the house and stop making loan payments.
A mortgage loan requires monthly debt service payments of $675.75 for 20 years and a final payment of $5,095. This type of a mortgage loan is?
a balloon mortgage.
All of the following statements about short sales are true EXCEPT?
a sales contract has not been created until the lien holder agrees to the short sale contract terms. All of the following statements about short sales are true: 1. the lienholder cannot be forced to participate in the short sale. 2. the borrower may be taxed on any debt that is forgiven by the lienholder. 3. the lienholder can file for a deficiency judgment for debt not paid by the sale of the collateral property.
A borrower would MOST likely obtain a residential real estate mortgage loan from?
a savings and loan association.
The clause in a deed of trust or mortgage that permits the lender to declare the entire unpaid balance immediately due and payable upon default by the borrower is the?
acceleration clause.
The clause in a mortgage loan instrument that would prevent the assumption of the mortgage loan by a new purchaser is?
an alienation clause.
An eligible veteran is under contract to purchase a home for $80,000 that he wants to finance with a VA-guaranteed 100% loan-to-value loan. Four weeks after contract formation, a certificate of reasonable value (CRV) for $77,000 was issued for the property. In this situation, the veteran may consider any of the following options EXCEPT?
borrowing the $3,000 for the cash down payment from a private source.
In a sale-and-leaseback arrangement, the?
buyer becomes the lessor.
In North Carolina, a deficiency judgment?
can be renewed by the creditor.
All the following might be part of an adjustable rate mortgage EXCEPT?
cap rate.
A land contract provides for the?
conveyance of legal title at a future date.
The financial interest in a property held by the owner in excess of any liens against it is called
equity.
A mortgagor is the one who?
gives the mortgage.
When compared with a 30-year payment period, taking out a loan with a 20-year payment period would result in all of the following EXCEPT?
greater escrow amounts.
The pledging of property as security for payment of a loan is?
hypothecation.
Mortgage lenders want assurance that future real estate taxes will be paid. The MOST common way to do this is to require the borrower to?
make installment payments into an escrow account.
FNMA's activities include buying and selling of all of the following EXCEPT?
mortgages at full face value.
The principal distinction between the primary mortgage market and the secondary mortgage market is in the?
origination versus the purchase of mortgage loans.
In a title theory state, a borrower's default could result in the collateral property being sold at auction as part of a?
power of sale foreclosure.
A lender may require the borrower to obtain additional security for the lender in the event of a borrower default on the loan. That security might arise from?
private mortgage insurance.
Fannie Mae?
purchases FHA loans in the secondary mortgage market.
In absence of an agreement to the contrary, the mortgage having priority will be the one?
that was recorded first.
A deed of trust differs from a mortgage in all of the following ways EXCEPT?
the obligation of the borrower to repay the funds.
When a mortgage loan has been paid in full, it is important for the borrower to be sure that?
the satisfaction of mortgage is recorded.
