Loan Repayment Plans and Loan Types Flashcards
(26 cards)
A loan made w/ no government insurance or guarantee is a
a. wraparound loan
b. take out loan
c. unconventional loan
d. conventional loan
D.
Related to interest rate adjustments, on one-hundredth of one percent is a
a. basis point
b. non recourse loan
c. PMI
d. MTA and prime rate
A.
Which loan does this best describe:
The borrower owes the exact amount borrowed on the maturity date
a. blanket loan
b. budget loan
c. interest only loan
d. open end loan
C.
The normal, long term financing that pays off a construction loan is a
a. construction loan
b. take out loan
B.
The insurance on FHA loans is referred to as
a. restored
b. Federal Housing Admin
c. funding fee
d. MIP Mortgage Insurance Premium
D.
The typical loan to value ration on a VA loan is
a. 20%
b. 100%
c. 80%
d. 50%
B.
Va loans do or do not have prepayment penalties
Do Not
A loan that meets all of Fannie Mae’s and Freddie Mac’s guidelines is a
a. conforming loan
b. nonconforming loan
A.
What is true regarding a VA loan
a. the entire loan is ensured
b. the borrower would pay MIP
c. the top 25% of the loan is guaranteed
d. VA loans can only be used once
C
HOA Reserve Funding = money used to pay for expenses that do not occur on a regular bases
- FHA & other loans
- HOA reserve requirements
10% min of HOA budgeted income
20% of budgeted income if 50% or more are rentals
An FHA loan is insured by the:
Federal Housing Admin
A VA loan is guaranteed by the:
Dept. of Veteran Affairs
A loan made w. no government insurance or guarantee is a:
Conventional loan
A loan in which the interest rate may change is a(n):
ARM
Two rate adjustment indices on adjustable rate loans are:
1.Monthly Treasury Average (MTA)
2. prime rate
Payments on a ________ loan include principal, interest, taxes, and insurance.
Budget Loan
(PITI)
A ________ loan is a permanent loan that will pay off a construction loan and possibly a lot loan.
Take-Out loan
With a(n) _______ loan, the borrower owes the exact amount borrowed.
Straight or Term
borrower pays interest only during the term of the loan w/ principal due at maturity
The loan that covers more than one parcel of property is a ________ loan
Blanket loan
A loan that includes personal property such as a washer and dryer:
Package loan
A loan that allows a borrower to borrow more money within the same loan is a _______ loan
Open-End loan
A loan which funds are advanced as building progresses is a _______ loan, also called ______ loan
Construction
interim
The normal, long-term financing that pays off a construction loan is _________ loan
Take-out
A short term loan that fills the gap between the time a construction loan expires and a takeout loan is place or enables a buyer of a home to borrow money on a home the buyer is trying to sell is a(n) __________ loan
Gap/Swing/Bridge
