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10 Cards in this Set
- Front
- Back
- 3rd side (hint)
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When using a deed of trust in a real estate loan, which of the following would be named as the beneficiary? |
d. lender |
a. seller b. buyer c. title company d. lender |
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Discount points charged by the lender on a loan are computed as a percentage of the |
a. loan amount |
a. loan amount b. closing costs c. sales price d. down payment |
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The Federal housing Administration (FHA) has developed several loan programs designed to |
a. insure housing loans |
a. insure housing loans b. provide funding for housing loans c. guarantee housing loans d. buy and sell housing loans |
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Lenders are required to disclose the total cost of borrowing under |
b. Regulation Z |
a. ECO b. Regulation Z c. FHA d. RESPA |
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If the borrower defaults, a mortgage clause that allows the lender to require that all the loan payments be due immediately is called a(n) |
a. acceleration clause |
a. acceleration clause b. due-on-sale clause c. alienation clause d. defeasance clause |
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A buyer purchased a house for $260,000 and obtained an 80 percent loan at 6% with 1.5 points. How much will the buyer have to pay for the points charged by the lender? |
b. $3,120 |
a. $780 b. $3,120 c. $3,900 d. $15,600 |
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Wraparound mortgages are second (junior) mortgages on the property and include |
b. the original loan plus an additional loan amount |
a. real and personal property as security for the loan. b. the original loan plus an additional loan amount. c. interest-only payments d. several parcels of land. |
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Tom purchased a new house for $230,000. He made a down payment of $25,000 and obtained a $205,000 mortgage loan. The builder of Tom's house paid the lender a fee to reduce Tom's loan rate by 3% for the first year and 2% for the second year. This type of loan arrangement is a |
a. buydown mortgage |
a. buydown mortgage b. wraparound mortgage c. package mortgage d. blanket mortgage |
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The purpose of the alienation clause in a mortgage is to |
a. prevent the loan from being assumed |
a. prevent the loan from being assumed b. prevent the loan from being sold c. allow for interest rate changes to be made d. allow negative amortization to accrue |
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The defeasance clause in a mortgage |
d. cancels the mortgage when the loan is repaid |
a. prevents the loan from being assumed b. prevents the loan from being sold c. allows for interest rate changes to be made d. cancels the mortgage when the loan is repaid |
