2.9 Flashcards
(13 cards)
True or False:
Estimate is required when a lender gives a borrower an informal interest rate quote.
False
______ are lower-than-market interest rates that a lender offers, but does not mention excessive closing costs.
Teaser rates
True or False:
Lenders usually withhold their “clear to close” as long as possible so they can perform quality control spot-checks.
True
Excessive or unnecessary closing costs charged by lenders are informally known as __________.
junk fees
_______ is the phrase that means the mortgage loan will be funded.
Clear to close
_________ make it possible for a non-veteran to buy with “zero down” by applying for two mortgage loans at the same time.
Zero down 80/20 conventional loans
Most lenders tie ARM interest rate changes in a/an ________.
index rate
To determine the interest rate on an ARM, lenders add to the index rate one or more percentage points called the ________.
margin
The person who helps a buyer complete a mortgage loan application is universally known in the mortgage industry as the ________.
loan originator, loan officer, or LO
Your buyer will be called the ______ by the people who work in the mortgage industry.
borrower
In a zero-down VA loan, the lender’s risk exposure remains at 80% of the loan amount, because the ________ covers the risk on the remainder of the loan.
VA
True or False:
It is possible for a non-veteran to buy with “Zero down” by applying for two mortgage loans at the same time.
True
True or False:
At the time of the loan application, buyers should have addresses of residences for last two years.
True
