METHODS OF PRINCIPAL (ORIGINAL OR TOTAL AMOUNT OF LOAN) AND INTEREST (DEBT SERVICE) PAYMENT
What may a lender require in a construction loan?
"Take out" Commitment
In a Home equity loan there is a _ day right of rescission period, required by the ______ __ _______ ___ (Regulation Z)
3, Truth in Lending Act
In a Home equity loan, the borrower receives a _____ for the ____ amount.
Check, Full
Interim financing made available in installments as improvements are completed is called a..?
Construction Loan
Who typically uses a Blanket Mortgage?
Developers
The interest rate in an adjustable rate mortgage (ARM) is subject to change based on ________ _____ or _________.
Economic Index, Indicator
Reverse Mortgage allows seniors to tap into the _____ in their homes without _______
Equity, selling
Payments for release of individual parcels are usually in equal amounts (T/F)
False
This loan has equal consecutive installments of principal and interest until balance becomes zero at maturity.
Fully Amortized Loan
This allows borrowers to obtain further advances at a later date (HELOC)
Home Equity Line Of Credit
A loan in which the owner borrows against the equity in a home is called..?
Home Equity Loan
The Rate calculation for Adjustable-Rate-Mortage is _____ + ______ = Rate
Index, Margin
In a Reverse Mortgage, the lender pays the borrower in _______ ________ of principal with each disbursement
Monthly Payments
How many parcels are pledges in a blanket mortgage?
More than one
Reverse mortgage is when the _________ pays the _________.
Mortgagee, Mortgagor
Future advance in HELOC are limited to the difference between ________ loan amount and the current amount ____
Original, Owed
A mortgage that comes with real property plus personal property is called a..?
Package Mortgage
A _______ _______ clause allows individual parcels to be released from lien as balance is paid down.
Partial Release
This loan involves equal payments of principal and interest ending with one lump sum balloon payment.
Partially Amortized loan/ Balloon Loan
Upon Death of mortgagor, sale of property, or when balance reaches maximum limit are all examples of when a _______ ______ is repaid.
Reverse Mortgage
A reverse mortgage is also called..?
Reverse annuity
This loan has interest only payments until maturity of loan, at which point the principal will be payed in one lump sum balloon payment.
Term Loan/Straight Loan
Construction loans typically have adjustable-rate/short-term loans (T/F)
True
Is it possible for an Adjustable-Rate-Mortgage to include annual adjustment caps or lifetime rate caps? (Y/N)
Yes
