2.3 Flashcards Preview

Course 2 > 2.3 > Flashcards

Flashcards in 2.3 Deck (20):
0

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

1

The cost of insurance on an insured conventional loan is _____% of the value of the loan.

.5

2

The insurance on an FHA loan is called _______.

MIP or mortgage insurance premium

3

The upfront insurance premium on an FHA loan is equal to ______% of the loan amount.

1

4

With zero-down payment convention loans, your buyers will have PMI costs of _______% if their credit scores are below 660.

1.3

5

A combo loan does not include _____ insurance.

private mortgage

6

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

7

If a purchaser receives an 80/5/15 loan, it is called a ________.

combo loan

8

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

9

Another phrase for adjustable rate mortgage is _______ rate mortgage.

variable

10

A/an ______ type of mortgage would be the most beneficial to someone with irregular income.

interest-only

11

An FHA loan allows a buyer to put as little ______% down.

3.5

12

Insurance on a privately insured conventional loan is called _______.

PMI or private mortgage insurance

13

True/False:
In a VA loan, sellers can pay all closing costs up to 6% of the purchase price.

True

14

A first mortgage for 20% of the value with another loan for 10% of the value is called a _______ loan.

combo

15

If a homebuyer defaults on an FHA loan, the lender is paid from a/an ________ fund.

insurance

16

True/False:
A VA loan is always assumable.

False

17

For an FHA loan, the buyer is allowed to pay maximum ____% origination fees.

1

18

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

19

Conventional loans are usually secured by _____ entities such as Fannie Mae.

government sponsored