Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
22 Cards in this Set
- Front
- Back
|
Fixed-rate |
Can be a rate for 5 years then change to another rate for the remainder (interest-only Fixed Rate loan) |
|
|
LTV |
Calculated using the loan amount divided by appraisal = % |
|
|
ARM adjustment |
Controlled by the periodic cap- Prevents the start rate from moving anymore than the given % |
|
|
Fully Indexed Rate (True Rate) |
Margin + Index |
|
|
RHS |
(Rural Housing Service) No down pmt 29/41 No MIP (Guarantee Fee) |
|
|
VA guarantee covers what amount of the veteran's entitlement?
|
4 times the veteran's entitlement
|
|
|
Property that is transitory and can be moved?
|
Personal property
|
|
|
Any loan max seller consession a borrower can receive when making a 20% down payment?
|
6% for LTV of 90% or less |
|
|
USDA front-end housing ratio
|
29%
|
|
|
How is annual PMI determined?
|
Multiply loan amount & mortgage insurance rate
|
|
|
Lock agreement
|
It is more expensive to lock a loan further out, but removes market fluctuation risk if loan closes on time
|
|
|
How do you get rid of PMI?
|
20% down payment |
|
|
Section ll of the 1003 form focuses on what?
|
Property information
|
|
|
What occurs when documents are executed and afterwards funds are disbursed
|
Wet settlement
|
|
|
What is Title Insurance for?
|
Coverage for undisclosed liens and other title defects that do not show up in the title search
|
|
|
Who is Title Insurance required by?
|
The Lender and it is mandatory for loan approval. Owner's Insurance is voluntary.
|
|
|
What trick questions should you look out for in regards to interest rate margin questions?
|
A margin always stays the same % and does not move
|
|
|
What is no longer used as a result of TRID?
|
GFE- Good Faith Estimate HUD-1 Settlement Statement Special Information Booklet |
|
|
What do some FHA loan programs allow to be financed as extra?
|
Energy efficient renovations or repairs
|
|
|
When a home is in a flood zone how long is flood insurance required?
|
The life of the loan
|
|
|
What is residual income? |
Income remaining after subtracting taxes, housing expenses, and all recurring debts and obligations from W-2 income |
|
|
What is per diem? |
The prorated amount of interest that the borrower pays to the lender for borrowing the money from the closing to the end of the month. |
