Terms in this set (23)
Which mortgage allows a person to buy a home with no money down?
A developer would MOST likely obtain which type of mortgage on a new subdivision?
Buyer Carr went to get an FHA loan because rates were significantly below the current market rate for conventional loans. The loan requires 3 discount points because it is below market rates. Which BEST describes this situation?
Points can be charged to either the buyer or seller
The amount of a loan expressed as a percentage of the value of the real estate offered as security is:
Loan to value ratio
A lender generally charges discount points on an FHA loan to:
Provide greater interest yield to the investor
A man had a loan for 60,000 and he had to pay 2.5 points. How much would he have to pay in cash?
In making a home mortgage loan, a lender would consider all EXCEPT:
Financial need of the borrower
A final payment of a mortgage loan that is considerably larger than the other monthly payments because the loan was not fully amortized is called:
The basic difference between an FHA and a VA loan is:
FHA insures loans, VA guarantees them.
For a veteran to obtain a VA loan, the VA must issue a certificate of:
A veteran had a VA loan using his full entitlement. He allows another veteran to assume the loan without VA approval. Could he immediately get another VA loan?
No. He is still liable for the loan
An FHA mortgage is obtained through:
Any qualified lending institution
The primary distinction(s) between the primary and secondary mortgage market is:
The secondary market is fundamentally a holding or warehousing process
Which is NOT an agency that deals (buy loans) in the secondary market?
Federal housing administration
What kind of a loan would be fully paid out over the life of the loan?
_______ mission is to increase homeownership, support community development, and increase access to affordable housing free from discrimination
A loan with a balance of $21,000 prior to June 1st payment was figured at 11% annually with monthly principal and interest payments of $571.80. There was a 1% prepayment penalty. The owner paid the June 1st payment and then paid off the balance of the loan. How much was the prepayment penalty?
The VA benefit from the department of veteran's affairs for a veteran approved home loan guarantees that:
The loan, or a portion of it, made by an approved lending institution will be paid
This organization's public mission and defining goal is to help more families achieve the American Dream of homeownership:
Federal national mortgage association
The mortgage servicing disclosure statement
Both a and b
_____ guaranty allows mortgage lenders to obtain a better price for their mortgage loans in the secondary market. The lenders can then use the proceeds to make a new mortgage loans available.
Government national mortgage association (GNMA)
______ ensures that all consumers are given an equal chance to obtain credit. This doesn't mean all consumers who apply for credit get it; it factors such as income, expenses, debt, and credit history are consideration for creditworthiness.
The equal credit opportunity act (ECOA)
A federal mortgage fraud indictment could lead to a prison term of up to
Up to 30 years
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13. TEST / Types of Mortgages and Sources of Financing
Ch. 13 - Types of Mortgages and Sources of Financing
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