Flashcards in Finance Deck (46):
An instrument which pledges real property as a collateral for a loan is know as a:
A default on a mortgage may be declared by the lender if the mortgagor fails to pay:
Principal and interest
A partially amortized loan had a:
A purchase money mortgage is characterized by the fact that:
Title passes at closing
The clause in a mortgage which allows the lender to declare the entire balance of the loan due and payable immediately if there is default is referred to as the:
The right of the property owner to redeem title to real property after a tax sale is called:
Statutory right of redemption
Currently, a homeowner who sells his/her home and is not married is entitled to a federal capital gain exemption of up to ______________ every two years.
The owner's interest in the value of real property, which is usually reflected as the difference between the market value and the balance due on the mortgage note is called:
In "lien theory" states, at closing, title to real property which has been financed by way of mortgage goes to:
The secondary mortgage market refers to:
Corporations or governmental agencies which buy mortgages
An FHA loan:
Is insured by the FHA, but paid for by the buyer.
A method of selling real estate whereby the buyer takes possession and pays for the property while the seller retails the title is a:
Private mortgage insurance is usually required when:
The loan-to-value ratio exceeds 80%
What a buyer assumes an existing mortgage:
He/she takes primary personal responsibility for the debt.
Mortgage insurance on an FHA loan is designed to protect the:
Funds for FHA loans are provided by:
Qualified institutional lenders
A lender might make an FHA or VA loan rather than conventional loan because of the:
If a mortgage specifies a balloon payment:
The final payment is larger than pervious payments.
The clause calling the entire balance due and payable if the property is sold is called a(an):
Subordination means to:
Waive priority of a lien to another lender
To be valid and enforceable, a mortgage must be:
Alienation clause is also referred to as the:
To obtain a VA loan, it is necessary to have a:
Certificate of eligibility.
The purchase of FHA mortgage insurance is:
Required on all FHA loans.
The typical mortgage loan that a homebuyer receives from a lender, which is not a guaranteed or insured by the government, is a:
A veteran who has obtained a VA loan from a lender has secured:
A government guaranteed loan.
Which of the following types of loans generally involve the highest degree of risk for the lender?
B.) Construction loan
C.) VA loan
D.) conventional loan
B.) construction loans
What is a mortgage loan that requires monthly payments of $213.75 for 20 years and a final payment of $5,350 called?
A ballon mortgage
The interest held by a vendee under a contract for deed, installment contract, or land contract is:
A statement to a borrower, setting forth the amount of the balance unpaid and the interest rate, is called a/an:
The clause in a mortgage that allows the lender to adjust interest is the:
A mortgage that allows for advances to a mortgagor up to a certain maximum is:
The most popular home mortgage loan is:
A conventional loan
A secondary money market entity purchases loans at a discount from primary lender. This is known as:
By increasing the amortization period of a load, the:
Monthly payment would decrease
What is a characteristic of both FHA and VA loans?
Absence of prepayment penalties
With what type of tax is the term "tax shelter" generally associated?
What real estate transaction would involve both the buyer and seller being grantors?
The process of pledging something as security without giving up possession is called:
A government insured loan is:
A government guaranteed loan is:
A mortgage loan that places a lien on more than one parcel of land is a:
A mortgage loan that includes both the house and the furniture would be a:
The act that requires a credit bureau to give one the right to inspect information in his/her file and correct any errors is known as the:
Fair credit reporting act.
The national consumer credit protection act is also know. As:
The truth and lending act