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65 Cards in this Set

  • Front
  • Back
You are notified on your monthly statement approximately 15 days prior to the scheduled rate change date if there will be adjustments in the interest rate and subsequent monthly payments for your mortgage loan. (True or False)
True
A credit report fee of $17 will be charged for all mortgage loans. (True or False)
False
Future interest rate changes for the 2-Year ARM will be based on ___________________ .
The one-year Constant Maturity Treasury yield.
You are notified approximately 30 days prior to the scheduled rate change date if there will be adjustments in the interest rate and subsequent monthly payments for your mortgage loan. (True or False)
False - 45 days or 15 days on your statement
SECU pays a dividend on the escrow account at the share rate. (Ture or False)
True
The cost for a survey varies but will typically be between $____ and $____.
$125-$300
The maximum loan amount at 100$ loan-to-value (LTV) for ARM's is $300,000. Loans in excess of this amount are limited to ____% LTV.
80%
An escrow analysis of mortgage loans is sent out yearly. (True or False)
True
When is the title insurance fee collected?
at closing
Your maximum indebtedness to SECU is $__________.
$750,000
The maximum loan-to-value on rental property is ____% and the property must be located in __________________________.
80%, North Carolina
Mortgage insurance is required for a Fixed Rate Mortgage loan with over ____% financing.
80%
For fixed rate loans, Private Mortgage Insurance (PMI) is required if the LTV exceeds ____%.
80%
What type of loans are available for construction-permanent mortgage loans?
2-year and 5-year ARM
The cost for Flood Insurance Certification is $____.
$14
Who sets the initial interest rate for all SECU Adjustable Rate Mortgage loans?
The SECU Board of Directors
The principal balance of your mortgage loan will always show a decline. (True or False)
True- SECU's mortgage loan program is designed to prevent an excessive accumulation of interest on your loan between payments. For ARM loans, the payments will be adjusted to keep pace with any new interest rate changes.
The Credit Union MUST order the appraisal from a list of approved appraisers and collects a fee equal to the cost of the service, usually $150 to $300, at closing. (True or False)
False
SECU is an approved lender for this federal income tax credit program administered by the N.C. Housing finance agency. What is the name of this program?
Mortgage Credit Certificate Program (MCC)
A credit report fee is required for an ARM. (True or False)
False
A credit report fee of $17 will be charged for all ARM and fixed rate mortgage loans. (True or False)
False
When is the termite report ordered?
Upon loan approval
The cost of title insurance is between $125-$300 (True or False).
False - it is $2 per thousand dollars of the loan amount
The interest rate for the 2-Year ARM may not change by more than ____% every two years or ____% over the life of the loan.
1% every two years or 8% over the life of the loan.
The property used as collateral for construction loans and fixed rate loans must be located in North Carolina, South Carolina, Virginia or Georgia. (True or False)
False - The property used for collateral for construction loans and fixed rate loans must be located in North Carolina.
The maximum change in the interest rate for a 5-year ARM is ____% at each 5-year anniversary, for a maximum increase of ____% over the life of the loan.
2.5% at each 5-year anniversary, for a maximum increase of 5 % over the life of the loan
There is no charge or penalty for paying off a Credit Union loan early. (True or False)
True
Account activity is listed on your monthly mortgage statement. (True or False)
False. It is listed on your combined monthly statement
The maximum term for the 2-Year ARM is ___ years
30
The Homestead Mortgage loan will finance ____% of the purchase price up to $_________ and up to $_________ for closing costs.
100% of the purchase price up to $300,000 and up to $1,500 for closing costs.
An origination fee of 1% of the loan amount is required for a fixed-rate mortgage loan. (True or False)
True
SECU offers a ____ year fixed rate and a ____ year fixed rate mortgage.
15 year and 30 year
The Construction-Permanent Mortgage program provides a _________ construction phase before the permanent, regular payment phase begins.
6-month
You can have your mortgage payment payroll deducted or withdrawn directly from an SECU deposit account. (True or False)
True
An underwriting fee of $35 is charged for all mortgage loans. (True or False)
False - only for fixed rate mortgage loans
What is the maximum loan amount for a Fixed Rate Mortgage loan?
$275,000
The termite report fee is usually between $___ and $___.
$60 to $150
For ARM loans, the Credit Union can in some situations lend up to 100% of the property value without Private Mortgage Insurance (PMI). This represents a significant savings in up-front costs and monthly payments. (True or False)
True
The fee for recording the Deed of Trust with the county Register of Deeds is $____ for the first page of each document and $____ for each additional page. Usually, $____ is the total cost for recording a Deed of Trust.
is $12 for the first page of each document and $2 for each additional page. Usually, $24 is the total cost for recording a Deed of Trust
For fixed rate mortgage loans, the Credit Union can in some situations lend up to 100% of the property value without Private Mortgage Insurance (PMI). This represents a significant savings in up-front costs and monthly payments. (True or False)
False - This is True for ARM loans
Which types of loans can be selected for the First Time Home Buyer's Mortgage loan program?
The 2-year or 5-year ARM loans
An underwriting fee of $____ is charged for fixed rate mortgages only.
$35
Any Credit Union member 21 years old or older may apply for loan services. (True or False)
False - 18 years
When is the expense for recording the Deed of Trust with the county Register of Deeds collected?
at closing
An escrow analysis will be sent out monthly for all mortgage loans. (True or False)
False
For fixed rate loans, Private Mortgage Insurance (PMI) is required if the LTV exceeds 90%. (True or False)
False - 80%
Changes in the rate of the 5-Year ARM are based on ________________.
The one year Constant Maturity Treasury yield.
What fees are required at application time for an ARM loan?
the appraisal fee and the termite report fee.
A ____% origination fee without a dollar cap will be collected at closing for a Construction-Permanent Mortgage loan.
1%
Notice of a rate and payment change to the 5-Year ARM will be sent approximately ____ days prior to the date the payment will change.
45 days
During the application period, you have the option to "lock-in" or reserve the current rate for ____ days on ARM loans and ____ days on fixed rate loans
60 days and 30 days
When is the termite report fee collected?
At the time of application
There are 4 fees required when you apply for a fixed-rate loan. What are they?
appraisal fee, termite report fee, underwriting fee and credit report fee
A credit report fee is required for a Fixed-Rate Mortgage loan. (True or False)
True
For ARM loans, the Credit Union assesses a charge of ______% of the loan amount or $______, whichever is less.
3/4% or $750
With the First Time Homebuyer's Mortgage, Members who have not owned a home in the past __ years may finance up to ____% of the purchase price of a home with a maximum loan of $___________.
3 years may finance up to 100% of the purchase price of a home with a maximum loan of $300,000.
A ____% origination fee, without a cap, is assessed for constructin-permanent originations and fixed rate mortgage loans.
1%
Members must have the required closing costs in a savings account for the Homestead Mortgage loan. (True/False)
False
Members must have the required closing costs in a savings account for the First Time Home Buyer's Mortgage loan (True/False)
True
The cost of title insurance is $____ per thousand dollars of the loan amount.
$2
The Credit Union MUST order the appraisal from a list of approved appraisers and at the time of application collects a fee equal to the cost of the service, usually $150 to $300. (True or False)
True
An origination fee of 1% of the loan amount is required for an ARM. (True or False)
False
You must provide the name and addresses of employers for the past ____ years during the application process.
2
The maximum term for a 5-year ARM is ____ years.
15
A credit report fee of $17 will be charged for fixed rate loans. (True or False)
True