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20 Cards in this Set
- Front
- Back
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Insurance for the protection of lending institutions making conventional loans is called what? |
PMI - private mortgage insurance
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FHA programs are for what purpose?
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INSURING housing loans
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FHA bases its commitment on a % of? a. certificate of reasonable value, b. purchase price, c. selling price, d. acquisition cost
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Acquisition cost (d)
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Which FHA program provides for lower monthly payments in the early years of the mortgage term by not requiring the borrower to pay all the interest at that time?
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Program 245 |
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What statement about VA loans is correct? a. repayment of 100% of VA loans is guaranteed, b. VA loans may be 100% of value of property, c. Veteran can use VA-property for rental, d. When veteran gets 1 VA loan, he can never get another VA loan
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b
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What about discount points is correct? a. Points increase lender's yield on the loan, b. each point increases 1% of loan amount, c. buyers can pay points on VA, FHA and conv loans, d. all of the above
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d
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What is not true about Regulation Z? a. applies to commercial mortgages, b. requires lenders to furnish a disclosure statement to the borrower, c. Provides for 3 day right of rescission if residence owned is pledged, d. regulates the advertising of credit terms of property offered for sale
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a
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RESPA requires all EXCEPT: a. Buyer's guide to settlement costs, b. Good faith estimate, c. Standard settlement form, d. 3-day right of rescission
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d
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ECOA requires lenders to make consumer loans on an equal basis to all EXCEPT: a. Age, b. Occupation, c. Gender, d. Marital status
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b
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Type of mortgage requiring borrower to pay only interest during the mortgage term is called?
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Term
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Amount of interest paid in amortizing mortgage for month in which principal balance is $73k and rate is 8% is?
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a
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Mortgage not fully amortizing basis and requires larger final payment
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Balloon mortgage
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Mortgage which 2 or more parcels of land are pledged is called?
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Blanket mortgage
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Mortgage subordinate to another?
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Junior mortgage
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Mortgage given by the buyer to the seller to secure payment of part of the purchase price is what?
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Purchase money mortgage
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Type of mortgage in which the payments are lower in the early years and increase at specified intervals is?
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Graduated payment mortgage
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Sale price of the property is $180k and buy is putting 20% down. Lender is charging buyer 2 points. What is the $ buyer will pay as points?
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$2,880
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Michigan max interest rate between private parties
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11 percent
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Perc tests are used for what? a. potability of water, b. land is free from contaminants, c. land will not bubble in extreme hot/humid weather, d. soil's ability to retain and absorb water
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The soil's ability to retain and absorb water (d)
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Michigan Consumer Protection Act applies to: a. Real estate licensees, b. Consumable products only, c. Acts of evidence, d. Mortgage lenders only
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a
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