2.3 Flashcards
(20 cards)
The cost of insurance on an insured conventional loan is _____% of the value of the loan.
.5
An interest rate that represents the lender’s cost of doing business plus the profit they will make on the loan is called the ________.
margin
The insurance on an FHA loan is called _______.
MIP or mortgage insurance premium
The upfront insurance premium on an FHA loan is equal to ______% of the loan amount.
1
With zero-down payment convention loans, your buyers will have PMI costs of _______% if their credit scores are below 660.
1.3
A combo loan does not include _____ insurance.
private mortgage
True/False:
With an insured conventional loan,, the seller an pay up to 6% of closing costs if your buyer has less than 10% down.
False
If a purchaser receives an 80/5/15 loan, it is called a ________.
combo loan
A _______ loan is advantageous to your buyer when she has less than 20% down and is willing to take out a second mortgage with the first mortgage.
combo
Another phrase for adjustable rate mortgage is _______ rate mortgage.
variable
A/an ______ type of mortgage would be the most beneficial to someone with irregular income.
interest-only
An FHA loan allows a buyer to put as little ______% down.
3.5
Insurance on a privately insured conventional loan is called _______.
PMI or private mortgage insurance
True/False:
In a VA loan, sellers can pay all closing costs up to 6% of the purchase price.
True
A first mortgage for 20% of the value with another loan for 10% of the value is called a _______ loan.
combo
If a homebuyer defaults on an FHA loan, the lender is paid from a/an ________ fund.
insurance
True/False:
A VA loan is always assumable.
False
For an FHA loan, the buyer is allowed to pay maximum ____% origination fees.
1
The sellers may contribute up to _______ percent of the property’s sale price toward the buyer’s actual closing costs for an FHA loan.
6
Conventional loans are usually secured by _____ entities such as Fannie Mae.
government sponsored
