Section 23 unit 2 exam

What is the calculation used to determine the LTVR? A. (100 ÷ property value) x loan amount B. (Loan amount ÷ property value) x 100 C. (Loan amount ÷ sales price) x 100 D. (Property value ÷ loan amount) x 100

(Loan amount ÷ property value) x 100

A buyer anticipates a house payment of $1,000 per month, with monthly homeowner association fees of $150. The buyer also has a car payment of $400 per month. If the buyer earns a monthly gross income of $5,000, what's the housing ratio? Unset starred question A. 20% B. 23% C. 28% D. 31%

23%

Which range of credit scores represents subprime borrowers? A. 0-100 B. 250-300 C. 580-669 D. 740-799

580-669

Consumers in the _______ range have an above-average credit score. They tend to qualify for better interest rates than those in the "acceptable" category. A. 649-699 B. 700-739 C. 740-799 D. 800+

740-799

Consumers in the _______ range are well above the average credit score and generally have an easy time getting approved for new credit. A. 500+ B. 600+ C. 700+ D. 800+

800+

Jane is purchasing a property for $310,000 and plans to finance $250,000. What is the loan-to-value ratio? (Round to the nearest percentage.) A. 79% B. 81% C. 83% D. 85%

81%

Which type of insurance must a buyer obtain if a mortgage is involved? A. Auto insurance B. Homeowners fire and hazard insurance C. Life and casualty insurance D. Medical insurance

Homeowners fire and hazard insurance

What's another term for back-end ratio? A. Housing ratio B. Loan-to-value ratio C. Payment ratio D. Total debt ratio

Total debt ratio

Ralph and his wife are hoping to purchase their new home. Their lender is running their credit scores. How are Ralph and his wife's credit scores determined? A. By running a credit report B. By voter registry C. Through employment history D. Through school transcripts

by running a credit report

Payment history, age of accounts, credit usage, and types of accounts are factors considered in calculating a credit score. What's also a factor? A. Income B. Inquiries C. Marital status D. Race

inquiries