Real Estate Ch 10
Terms in this set (11)
1. Private mortgage insurance (PMI) is usually required on _____ loans with loan-to-value ratios greater than _____ percent.
Home, 80 percent.
1. The dominant loan type originated and kept by most depository institutions is the
Adjustable rate mortgage
2. Which of the following mortgage types has the most default risk, assuming the initial loan-to-value ratio, contract interest rate, and all other loan terms are identical?
Interest only loans
3. A mortgage that is intended to enable older households to "liquify" the equity in their home is the
Reverse annuity mortgage
A jumbo loan is
A conventional loan that is too large to be purchased by Fannie Mae or Freddie Mac.
The maximum loan-to-value ratio for an FHA loan over $50,000 is approximately
The maximum loan-to-value ratio on a VA guaranteed loan is
Conforming conventional loans are loans that
Are eligible for purchase by Fannie Mae and Freddie Mac
Home equity loans typically
Have tax-deductible interest charges
The best method of determining whether to refinance is to use
Net benefit analysis
Probably the greatest contribution of FHA to home mortgage lending was to
Establish the use of the level-payment home mortgage