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20 Cards in this Set
- Front
- Back
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The words balloon payment on a loan refers to the A) First Payment B) Last Payment C) Middle Payment D) Total Payment |
B) Last Payment |
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WHICH TYPE OF MORTGAGE FINANCING IS DESIGNATED FOR ELDERLY HOMEOWNERS? A) GROWING EQUITY MORTGAGE B) INTERIM LOAN C) REVERSE ANNUITY MORTGAGE D) GRADUATED PAYMENT MORTGAGE |
C) REVERSE ANNUITY MORTGAGE
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ON A CONVENTIONAL LOAN, A LENDER MAY PROTECT ITS INTEREST BY OBTAINING ADDITIONAL SECURITY THROUGH A) MORTGAGE INSURANCE PREMIUMS B) A BORROWER LOAN GUARANTEE C) FEDERAL HOUSING ADMINISTRATION D) PRIVATE MORTGAGE INSURANCE |
D) PRIVATE MORTGAGE INSURANCE |
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THE TYPE OF REAL ESTATE LOAN PAYABLE IN PERIODIC INSTALLMENTS THAT PAY DOWN THE PRINCIPAL BALANCE AS THE PAYMENTS ARE MADE IS CALLED A(AN) A) STRAIGHT LOAN B) CONVENTIONAL LOAN C) REVERSE ANNUITY LOAN D) AMORTIZED LOAN |
D) AMORTIZED LOAN
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THE TYPE OF REAL ESTATE LOAN MADE BY THE SELLER TO A BUYER FOR PART OF THE PURCHASE PRICE IS CALLED A A) STRAIGHT LOAN B) PACKAGED LOAN C) REVERSE ANNUITY LOAN D) PURCHASE MONEY LOAN |
D) PURCHASE MONEY LOAN |
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A LOAN THAT ALLOWS INCREASES AND DECREASES IN THE INTEREST RATE DURING THE TERM OF THE LOAN IS CALLED A) ADJUSTABLE RATE MORTGAGE B) GRADUATED PAYMENT MORTGAGE C) REVERSE MORTGAGE D) STRAIGHT LOAN |
A) ADJUSTABLE RATE MORTGAGE |
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THE PROVISION THAT PENALIZES BORROWERS WHO PAY OFF THEIR LOANS SOONER THAN AGREED UPON A) ALIENATION CLAUSE B) PREPAYMENT PENALTY C) NOVATION CLAUSE D) MIP |
B) PREPAYMENT PENALTY |
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UNDER WHICH OF THE FOLLOWING SITUATIONS WOULD THE LENDER NOT BE IN VIOLATION OF THE FEDERAL EQUAL CREDIT OPPORTUNITY ACT? A) REFUSING A CREDIT APPLICANT BECAUSE OF RACE B) REFUSING A CREDIT APPLICANT BECAUSE PART OF HIS OR HER INCOME WAS FROM PUBLIC ASSISTANCE C) REFUSING A CREDIT APPLICANT BECAUSE THEY ARE UNABLE TO QUALIFY D) REFUSING A CREDIT APPLICANT BECAUSE OF RELIGION |
C) REFUSING A CREDIT APPLICANT BECAUSE THEY ARE UNABLE TO QUALIFY |
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VA IS AUTHORIZED TO A) INSURE REPAYMENT OF LOANS B) REGULATE LENDING INSTITUTIONS TO MAKE VA LOANS C) CHARGE PREPAYMENT PENALTIES D) GUARANTEE REPAYMENT OF LOANS UP TO A SPECIFIED AMOUNT |
D) GUARANTEE REPAYMENT OF LOANS UP TO A SPECIFIED AMOUNT
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THE PRACTICE OF CHARGING MORE INTEREST THAN IS LEGALLY ALLOWED IS CALLED A) USURY B) HYPOTHECATION C) ESCHEAT D) ACCELERATION |
A) USURY
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TO COMPUTE THE COST OF A LOAN DISCOUNT POINT, EACH POINT IS EQUAL TO 1% OF THE A) LOAN AMOUNT B) DOWN PAYMENT AMOUNT C) APPRAISED VALUE D) SALES PRICE |
A) LOAN AMOUNT |
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WHEN THE PAYMENTS ARE NOT LARGE ENOUGH TO COVER THE INTEREST EXPENSE AND THE UNPAID INTEREST IS ADDED TO THE LOAN BALANCE, THIS IS CALLED A) STRAIGHT LOAN B) A MARGIN LOAN C) NEGATIVE AMORTIZATION D) CONVERTIBLE FEATURE |
C) NEGATIVE AMORTIZATION |
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A BUILDER IS GOING TO BUILD 5 HOMES. HE GETS A LOAN WHERE HE CAN RELEASE THE LIEN ON THE INDIVIDUAL PROPERTIES AS HE SELLS THEM. THIS IS CALLED A PARTIAL RELEASE CLAUSE. WHAT IS THE NAME OF THIS TYPE OF LOAN? A) BUDGET LOAN B) BRIDGE LOAN C) BLANKET LOAN D) CONSTRUCTION LOAN |
C) BLANKET LOAN |
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THE MOST COMMON TYPE OF LOAN INCLUDES PRINCIPAL, INTEREST, TAXES, AND INSURANCE. IT IS CALLED? A) TAKE-BACK MORTGAGE B) PURCHASE MONEY MORTGAGE C) BUDGET LOAN D) WRAPAROUND LOAN |
B) BUDGET LOAN |
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A TERM LOAN INCLUDES A) A BALLOON PAYMENT AT THE END OF THE TERM OF 5 YEARS B) INTEREST ONLY PAYMENTS C) A HIGH RATE OF PRINCIPAL REDUCTION D) A LOW RATE OF PRINCIPAL REDUCTION |
B) INTEREST ONLY PAYMENTS |
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FHA MAKES LOANS TO A) LOW INCOME PEOPLE B) FEDERALLY INSURED BANKS C) FHA DOES NOT MAKE LOANS D) BORROWERS THAT ARE EMPLOYED BY THE GOVERNMENT |
C) FHA DOES NOT MAKE LOANS
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A DISCOUNT POINT IS A WAY FOR A BORROWER A) TO LOWER THEIR DOWN PAYMENT B) GAIN INSTANT EQUITY C) PAY A FEE TO LOWER THEIR INTEREST RATE D) REDUCE THE LOAN BALANCE |
C) PAY A FEE TO LOWER THEIR INTEREST RATE |
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CONVENTIONAL LOANS ARE A) FHA LOANS B) NOT SECURED BY A GOVERNMENT AGENCY C) VA LOANS D) SECURED BY A GOVERNMENT AGENCY |
B) NOT SECURED BY A GOVERNMENT AGENCY |
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A LENDER IS QUALIFYING A BUYER FOR A LOAN OF $160,000. THE BUYER STATES HE DOES NOT WANT TO PAY PMI. WHAT IS THE MAXIMUM LOAN HE CAN RECEIVE? A) $144,000 B) $160,00 C) $128,000 D) $112,000 |
C) $128,000
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WHICH OF THE FOLLOWING BEST DESCRIBES THE FEE CHARGED TO MAKE A LOAN? A) REVERSION FEE B) ORIGINATION FEE C) DISCOUNT FEE D) TRANSFER FEE |
B) ORIGINATION FEE |
