Texas Real Estate Finance - Chapter 1
Promissory note
A borrower is said to be in default of their loan if they do not abide by the terms of the...? Deed Purchase contract Mortgage Promissory note
Foreclosure
A procedure whereby property pledged for a debt is sold to pay the debt in event of default in payments or terms is known as...? Police power Foreclosure Condemnation Hypothecate
Decreases
As construction prices increase, demand for new housing generally...? Increases Decreases Remains the same Construction prices and demand for new housing are not related
Collateral
Real or personal property which a borrower pledges as security for a loan is known as...? Accessory Chattel Collateral Substantial property
Legal title
The actual ownership of property is known as...? Secure title Recorded title Legal title Equitable title
Default
The failure to fulfill a duty or promise is known as...? Execution Hypothecate Default Performance
Interest rate
The percentage of a sum of money charged for the use of money is referred to as a/an...? Discount rate Lending rate Charge rate Interest rate
Equitable title
The right to obtain full ownership of property is known as...? Equitable title Legal title Secure title Full title
Liquidity
The secondary mortgage market offers ..............for the primary mortgage market? Supply Buyers Liquidity Support
Hypothecate
To pledge a thing as security without the necessity of giving up possession of it means to...? Record Acknowledge Notarize Hypothecate
Recession
Two or more consecutive quarters of negative growth is known as a...? Regression Rebound Recovery Recession
3.5 Percent (%)
What is the minimum down payment for an FHA insured loan...? 50 Percent (%) 20 Percent (%) 3.5 Percent (%) 10 Percent (%)
All of the above
Which of the following may impact real estate cycles...? Social attitudes Taxes Property values All of the above
3-5 years
A short term real estate cycle is...? 1-2 years 3-5 years 5-7 years 10-12 years
Primary mortgage market
The marketplace whereby loans are originated is referred to as the...? Primary mortgage market Secondary mortgage market Stock exchange Front-end mortgage market
Secondary mortgage market
The marketplace whereby the loans that were originated in the primary mortgage market are bought and sold is referred to as the...? Back-end mortgage market Secondary mortgage market Stock exchange Liquid mortgage market
Leverage
The use of debt financing of an investment to maximize the return per dollar of equity invested is known as...? Collateral Hypothecate Leverage Pledge
Equitable title
When a borrower hypothecates their property, the lender will maintain...? Legal title Equitable title Secure title Interim title
Obtaining financing to purchase a property
Which of the following is an example of using leverage in a real estate transaction...? Purchasing a property using all cash All of the above Inheriting a property from a family member Obtaining financing to purchase a property
Increase
If demand is high and supply is low, real estate prices will...? Increase Decrease Remain the same Real estate prices are not related to supply and demand
The house James purchased
James needed to obtain financing to purchase a new house. What will most likely be used as collateral for James' loan...? The house James purchased James' car James' bank account James' old house
Promissory note
Which of the following serves as evidence of a debt...? Promissory note Collateral Title Credit