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