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Flashcards in Calculating Adjustments Deck (4)
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Q

When one adds the margin to the index to find the fully indexed rate .
Make sure the adjustment (diff between proposed fully indexed rate and the current interest rate ) does not exceed the maximum adjustment cap per adjustment or over the life of the loan.

A

Adjustable Rate Loans (ARMS)

1
Q

When all dues, fees, assessments and other charges that are imposed on borrower or the property by a condominium association, or similar organization.

A

Community , association fees and assessments

2
Q

This when insurance protects a lender against the nonpayment of ,or default on, the loan.

A

Mortgage insurance

3
Q

A security instrument When all requirements and restrictions that are imposed in regard to federally related mortgage loan even if the loan does not qualify as a federally related mortgage loan

A

RESPA (Real Estate Settlement Procedures Act)