Finance
A seller takes back a second mortgage for $12,000 at 10% interest to note calls for a monthly interest only payments for five years then A balloon what is the first payment amount
$100
A lender gives Jenny a $15,000 mortgage at 9.5 interest payments are interest only for 10 years what balloon payment will be due
$15,000
A seller agrees to pay two points on a buyers loan the price is $120,000 and the buyer is making a 20% down payment to points equal
$1920
The minimum cash payment investment needed for a home with an FHA appraised value of 90,000 is
$3150
If a buyer purchases $100,000 home and gets an $80,000 mortgage loan at an interest rate of 6% how much are four points
$3200
What is the minimum down payment (cash investment) contribution for an FHA loan on $170,000 home
$5950
The Goldbergs who own their house free of any encumbrances are selling it to the Erwins for 115,000 the Goldbergs are taking back a straight note for 75,000 at 10% interest for 20 years. The first monthly payment will be
$625
Ann makes a 20% down payment on her 85,000 purchase. Her loan amount is
$68,000
What loan will not have a balloon payment due at the end of the loan term the termination date start date or due date
$90,000 loan at 8% interest amortized over 20 years
The income housing expense and total debt service ratio is for traditional 10% and 20% down conventional loans normally are
28% and 36%
Qualifying guidelines on most FHA loans are ______housing ratio and ______total debt ratio
31% 43%
PMI covers the risk of
A default on the loan repayment
Which clause any mortgage allows a lender to declare the entire unpaid balance due upon the borrowers default
Acceleration clause
A mortgage clause that prevent someone else from assuming a loan is
Alienation clause
The property value acceptable to the FHA as loan collateral is determined
As the less appraised value or the purchase price
To be eligible for an FHA loan one must
Be a US citizen permanent resident or non-permanent resident with a work visa
A mortgage that covers a number of parcels of real property and that may provide for the separate sale of each parcel is known as a
Blanket mortgage
Which is not an advantage of an FHA loan
Borrowers can use secondary financing for the minimum down payment
For an FHA loan a borrower cannot
Buy a rental property
When determining whether income is durable and stable and can be used in qualifying a person for a mortgage loan a factor the underwriter will not consider is
Child support payments that will continue for less than three years
A debtor May redeem property from the foreclosure process up until the ______ takes place
Confirmation of sale
Interest rates are a measure of the
Cost of money
Private mortgage insurance covers the risk of the possibility of
Default in loan repayment
The purpose of an acceleration clause in a mortgage instrument is to
Define, that in the event of default all future payments become due immediately
The federal national mortgage association is
Designed to increase the availability of money to primary lenders
The interest rate charged by the federal reserve for loans to member banks is called
Discount rate
The law that prevents discrimination in the lending processes
ECOA
The Federal housing administration
Ensure his mortgage lenders against default
ECOA refers to
Equal credit opportunity act
The interest value remaining in a property after all liens and other debts are taken into account is known as
Equity
The art of depositing some thing of value with a disinterested third-party creates a
Escrow
For a lower income buyer with higher debt ratio is the best loan choice would most likely be a
FHA loan
The federal national mortgage association is also known as
Fannie Mae
Three main secondary market sources are
Fannie Mae Freddie Mac and ginnie mac
Conventional loans follow the underwriting guidelines of
Fannie Mae and Freddie Mac
The federal government influences money supply with
Fiscal and monetary policy
Which mortgage requires principal and interest payments at regular intervals until the debt is satisfied
Fully amortized mortgage
The government national mortgage association is
Ginnie Mae
The veterans administration
Guarantees lenders against default
The FHA is administered by
HUD
A person may be turned down for a mortgage loan if
He has poor credit and income too low to qualify
A loan that includes a fixed rate. Followed by an adjustable rate. Is known as a
Hybrid loan
On an A.R. am the margin is the difference between that
Index value and the interest rate charged
What statement regarding the federal reserve is false
It's sets the prime rate
Which is not covered by respa laws
Lender may not discriminate based on source of income
In a real estate ad for mortgage financing which statement is permissible if no other information is given
Liberal terms available to qualified buyer
A mortgage brokers basic source of income is derived from
Loan origination fees charged to the borrower
Which is not a benefit of a VA loan
Loans are available for homes and business
Which is not a way for a buyer to avoid pmi on a conventional loan
Make a 10% down payment on a home
The one promising to pay the money in a promissory note is known as the
Maker
An agent should not refer a prospective buyer to a lawyer for advice about
Market interest rates
To be eligible for a VA loan a veteran must
Meet the VA eligibility requirements
One qualifying for a residential mortgage loan an applicants liabilities are most likely to be calculated as
Minimum monthly payment amounts
In real estate finance, disintermediation means
Money flows out of savings instituions and into higher return investments
Which is a voluntary lien
Mortgage
A lender that makes a secured loan for the purchase of real estate is known as the
Mortgagee
In regard to a mortgage loan the borrower is referred to as the
Mortgagor
An adjustable rate mortgage for the loan balance increases is experiencing
Negative amortization
The term used when I learn balance grows due to deferred interest is
Negative amortization
Which is not a trigger statement in regard to advertising under the truth in lending act
No down payment
The equal credit opportunity act, which is designed to limit discrimination in credit transaction, include which restriction
No restrictions can be placed on the source of income received
Which charge is used to increase a lenders yield on real estate loans
Origination fee
A loan that includes periodic payments of principle and interest followed by a balloon payment is known as a
Partially amortized loan
When assuming a loan the buyer would
Pay th seller the equity in their property
The main characteristic of a shorter term loan is the
Payments are higher
Funding of a construction loan is usually made
Periodically as the house is constructed
Broad forces influencing housing cycles are
Physical economic governmental and social (PEGS)
With a fixed rate loan
Principal and interest payments must remain constant
If the borrower obtains a conventional loan it makes a 20% down payment
Private mortgage insurance is not required
The real estate settlement procedures act does not require
Prohibiting agents from owning shares in lending companies
The secondary market for mortgage loans can be best described as the
Purchase and or sale of mortgage loans after origination
Funds for making FHA loans are provided by
Qualified lending instituions
Which is not a method used by the federal reserve to control monetary policy
Raise or lower the prime rate
Regulations Z applies to
Real estate credit transactions for 1 to 4 dwelling units
And a forclosure the debtor can get the house back through
Redemption
The federal truth in lending law
Regulates advertising with references to a mortgage interest rate
The closing disclosure is not required in the settlement of a transaction of a
Retail store building
In which market calendar sell mortgages
Secondary market
And purchase transaction a major source of second mortgages could be
Sellers
With a VA loan a veteran has the option of
Selling the home to a non-veteran who may then assume the balance of the loan
Which is not included in a borrowers income analysis
Soradic overtime and commissions
When the interest rate is much lower initially in order to get a buyer to use a particular loan program then jumps to a higher rate at the end of a specified period This is said to be a
Teaser rate
Which information can be found in a note
Terms and repayment provisons
The best loan for a buyer to obtain for a single-family home in need of repairs is
The FH a streamline 203K loan
On a VA loan who makes the final decision on their approval or denial of a loan
The VA and the underwriter is
RESPA does not prohibit and or placed limits on
The amount paid for origination fees
Which statement regarding a VA loan is true
The funding fee can be financed
The interest rate charged for FHA and VA loans are established by
The market
The VA guarantee program provides eligible veterans with
The opportunity to buy a home with little or no down payment
On an adjustable rate loan
The rate is tied to a specific index
The APR as required to be disclosed on a loan estimate is
The relationship between total cost of borrowing and the actual amount borrowed
What is the minimum down payment for a VA loan on a $75,000 home
There is no minimum requirement for qualified eligible veterans
Gloria qualifies for an FHA loan she should make her loan application
Through any FHA approved lender
When a mortgage loan is paid off over a shorter term the major advantage is a reduction in the
Total interest cost
For a conventional mortgage loan who makes the final decision on approval or denial
Underwriter
And FHA buyer may currently
Use a gift for his entire down payment
Which statement regarding VA loans is false
VA loans are available for investors who are veterans
The maximum allowable mortgage for an FHA loan
Varies by country
ECOA (Equal Credit Opportunity Act)
Which act prohibits discrimination in granting credit