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Miscellaneous Financing

Terms in this set (45)

How much does each discount point raise the yield to the lender?
A. 1/16 of 1%
B. 1/8 of 1%
C. 1/4 of 1%
D. 1/2 of 1%
B
The loan to value ration on a financed property is the ration of the
A. debt to the sale price
B. debt to the asking price
C. down payment to the debt
D. debt to the owners equity
A
The process used by various lending institutions to determine the prospective borrower's ability to repay the loan is called:
A. grantors
B. amortization
C. qualifying
D. underwriting
C
The value of the property above the amount of the outstanding mortgages would be referred to as
A. owners equity
B. junior mortgages
C. owners value
D. selling price
A
Amortization is the process of
A. liquidation of debt
B. depreciation
C. winding up a business
D. equity of redemption
A
All of the following statements apply to promissory notes EXCEPT
A. must be in writing
B. the borrower is personally liable for the payment
C. provide evidence of a valid debt
D. executed by the lender
D
If the repossessed property does not sell for the amount owned on the loan, the lender has recourse to obtain the balance due by obtaining a(n)
A. installment contract
B. take over loan
C. deficiency judgement
D. contract for deed
C
VA financing may be extended to include which of the following
A. mobile homes not permanently attached to the land
B. farm equipment as long as the veteran owns the farm
C. condominium
D. duplex when the veteran does not intend to live there
C
When mortgage money is in short supply
A. it is easiest to refinance loans
B. most homes sell for all cash
C. homes with existing conventional loans generally sell at a premium, because such loans are usually assumable
D. seller financing activity increases
D
From the beginning of a foreclosure suit to the date of the foreclosure sale, the mortgagor has a(n)
A. statutory right of redemption
B. constitutional right of redemption
C. mechanic's rights of redemption
D. equitable right of redemption
D
The repayment period on an amortized loan is changed from 30 to 15 years. For a $100,000 loan at 8%, the payment will
A. decrease
B. fluctuate from time to time
C. stay the same
D. increase
D
What is the best way for a home owner to liquidate a mortgage debt?
A. max loan value
B. min loan value
C. loan to value ratio
D. value to loan ratio
C
What is the best way for a home owner to liquidate a mortgage debt?
A. Have the employer withhold monthly payments from the borrower's salary
B. Amortization on a monthly basis
C. Using a land contract
D. Repaying the interest and planning on a balloon payment at the end
B
In making a loan covered by RESPA, the lender is required to:
A. make a disclosure of all charges not later than 12 days in advance of the closing
B. provide only a statement of closing costs and fees at the time of closing
C. advise the borrower that he has the right in all cases to rescind the loan for at least three days after the loan is made
D. provide the borrower with HUD approved information booklet and a good faith estimate of closing costs within three business days after the loan application has been received
D
A man dies and the lender holds a mortgage which he gave them. The lender
A. starts foreclosure proceeding immediately to satisfy the debt
B. looks to the man's heirs for payment since it is binding on his heirs
C. sends flowers
D. consider the debt null and void
B
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