Real Estate Principles 2 - Financing Principles
Sale and leaseback
A financial arrangement where at the time of sale the seller retains occupancy by concurrently agreeing to lease the property from the purchaser is known as...?
home equity loan
A loan against the equity in a home is known as a...?
Conventional Loan
A mortgage securing a loan made by investors without governmental underwriting is referred to as a/an...?
Bond
A written notice of an obligation given by a corporation or government entity is known as a...?
Which of the following is the riskiest loan for a residential borrower..?
Balloon Mortgage
Which of the followed is asked on a residential loan application...?
Employment Hx, Current monthly housing expenses, List of assets and liabilities
Which of the following is a privately owned corporation that purchases FHA, VA, and conventional mortgages...?
Fannie Mae
The U.S Central bank is known as the...?
Federal Reserve System
In this type of loan, a borrower initially pays a reduced interest rate, which gradually increases to the market rate after a period of time...?
Flexible payment loan
Most deed of trust loans are...?
Fully amortized
A mortgage payment includes principal, interest, taxes, and...?
Insurance Payments
Which of the following is a source of real estate financing...?
Local banks, Mortgage banking companies, and Credit unions
What do lenders require from all borrowers prior to issuing a loan...?
Pre-approval
A lender will most likely provide a higher LTV for which of the following property types...?
Primary Residence
The primary function of a .......... is to promote thrift and home ownership?
S&L
Once a bank make a loan to a borrower, the bank may sell that loan in which of the following markets...?
Secondary mortgage market
Loan orginiation
The financing charge that a lender requires is referred to as the...?
Yield
The interest earned by a bank on the money it has loaned is referred to as...?
Discount Rate
The minimum interest rate set by the Federal Reserve for lending to other banks is known as the...?
Mortgage Broker
A broker who arranges a mortgage loan between a lender and a borrower for a fee is referred to as a...?
Which of the following purchases newly originated and seasoned agricultural loans from lenders...?
Farmer Mac
Negative amortization may occur in which of the following types of loans...?
Flexible payment loan
A term loan is typically used for which of the following...?
Home improvement loans, Second mortgages, and Investor loans
Which of the following will most likely benefit from a balloon mortgage...?
Homebuyers who only intend to live in the property for a few years
A monthly mortgage payment primarily consists of which of the following in the early stages of the loan...?
Interest
The Federal Reserve regulates the flow of money and interest rates indirectly by controlling which of the following requirements for its member banks...?
Reserve Requirements
The Federal Reserve System is divided into how many geographical districts....?
12
What is required to fully satisfy a balloon mortgage...?
A balloon payment
Construction Loan
A loan made to finance the actual construction or improvement on land is referred to as a...?
Creditor
A person to whom a debt is owed is known as a...?
Mortgage Banker
A person whose principal business is the originating, financing, closing, selling and servicing of loans secured by the real property for institutional lenders on a contractual basis is referred to as a...?
In this type of mortgage, the scheduled payment will not amortize the loan over the mortgage term...?
Balloon mortgage
Which of the following is a U.S. government agency that purchases FHA and VA mortgages...?
Ginnie Mae
The relationship between the amount of a mortgage loan and the lender's opinion of the value of property pledged to secure payment of the loan is known as the...?
Loan to Value Ratio
This occurs when monthly installment payments are insufficient to pay the interest accruing on the principal balance, so that the unpaid interest must be added to the principal due...?
Negative amortization
Mortgage guaranty insurance available to conventional lenders on the first, high risk portion of a loan is referred to as...?
Private mortgage insurance
A mortgage that requires the mortgagor to pay interest only during the mortgage term, with the principal due at the end of the term is referred to as what type of mortgage...?
Term mortgage
The Texas Department of Housing and Community Affairs offers which of the following mortgage and housing assistance programs...?
The Texas First-Time Homebuyers Program The Texas Bootstrap Loan Program Veterans Housing Assistance Program
Lenders base their LTV ratio on which of the following...?
The lesser of the appraised value or the contract price
The Fannie Mae form 1003 is also known as the...?
Uniform Residential Loan Application