Chapter 16: Real Estate Financing Practice Flashcards Preview

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Flashcards in Chapter 16: Real Estate Financing Practice Deck (30):
1

Which pair of terms is considered synonymous

Interim financing and construction loan

2

How is Fannie Mae involved with FHA loans?

Fannie Mae buys FHA loans

3

The type of real estate loan that allows the lender to increase the outstanding balance of the loan up to the original some in the note while advancing additional funds is the?

Open end mortgage

4

Loans for which use are not affected by the truth in lending the lender regulation Z?

Business use

5

An FHA insured mortgage loan would most likely be obtained from what lending institution?

Any qualified lending institution

6

Fannie Mae, Ginnie Mae and Freddie Mac have in common the purpose of?

Purchasing existing mortgage loans

7

Does a buyer need to be a veteran to assume a VA loan?

No

8

A mortgage broker generally offers what service?

Bringing the borrower and the lender together

9

The maximum amount for payments in an adjustable rate mortgage is set by the?

Cap

10

A borrower obtained a $7000 second mortgage loan for five years at 6% interest per annum. Monthly payments for $50. The final payment included the remaining outstanding principal balance. What type of loan is this?

Partially amortized loan

11

A principal distinction between the primary mortgage market in the secondary mortgage market is in the?

Origination versus the purchase of mortgage loans

12

A real estate loan payable in periodic installment that are sufficient to pay the principal in full during the term of the loan is called?

Amortized loan

13

An extension of credit from seller to buyer to allow the buyer to complete the transaction is?

Purchase money mortgage

14

When compared with a 30 year payment., Taking a loan with a twenty-year payment. Would result in what?

Faster amortization

Higher monthly payments

Quicker equity buildup

15

Where would a borrower most likely obtain a residential real estate mortgage loan?

Commercial lender

16

Regulation Z applies to?

Personal credit transactions

17

In a graduated payment loan

Mortgage payments increase

18

The type of mortgage loan that uses both real and personal property as security is?

Package mortgage

19

Which entity normally purchases mortgages in the secondary mortgage market?

Ginnie Mae

20

A mortgage loan requires monthly payments of $175.75 for 20 years and a final payment of $5095. This type of mortgage loan is?

A balloon mortgage

21

In the sale and lease agreement the?

Buyer becomes the lessor

22

A 70-year-old homeowner has on her house for over 50 years. It has fallen into disrepair book, because she lives on a fixed income, she does not have the money to make the needed repairs. She is a considerable amount of equity in the house. What type of loan would probably best suit her needs?

Reverse mortgage

23

Type of loan that will most likely have the lowest loan to value ratio is?

Conventional loan without PMI

24

A lender may protect its interest in a mortgage loan by obtaining additional security from?

Private mortgage insurance

25

A developer had a mortgage loan on his entire housing development. When he sold a lot to a buyer, he was able to deliver title to that lot free of the mortgage lien by obtaining a partial release. What type of loan did the developer have?

Blanket mortgage

26

What is not associated with a VA loan

A 1% prepayment penalty

27

A borrower and seller have agreed to split the discount points. The sale price of the property was $125,000 and the bar were secured a 75% loan. If the lender charge for points and a 1% origination fee, how much did the borrower and the seller each pay?

$1875

28

What loan would be covered by the real estate settlement procedures act?

Loan for a 1 to 4 family residential property

29

A borrower has secured a FHA insured phone. This means that the FHA will insure who against a possible loss

Lender

30

The grantor becomes the leasee and the grantee becomes the lessor under which financing arrangement?

Sale and leaseback