Loan Repayment Plans and Loan Types

Question 1

A loan made w/ no government insurance or guarantee is a

a. wraparound loan
b. take out loan
c. unconventional loan
d. conventional loan

Answer 1

D.

Question 2

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

Answer 2

A.

Question 3

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

Answer 3

C.

Question 4

The normal, long term financing that pays off a construction loan is a

a. construction loan
b. take out loan

Answer 4

B.

Question 5

The insurance on FHA loans is referred to as

a. restored
b. Federal Housing Admin
c. funding fee
d. MIP Mortgage Insurance Premium

Answer 5

D.

Question 6

The typical loan to value ration on a VA loan is

a. 20%
b. 100%
c. 80%
d. 50%

Answer 6

B.

Question 7

Va loans do or do not have prepayment penalties

Answer 7

Do Not

Question 8

A loan that meets all of Fannie Mae’s and Freddie Mac’s guidelines is a

a. conforming loan
b. nonconforming loan

Answer 8

A.

Question 9

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

Answer 9

C

Question 10

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

Question 11

An FHA loan is insured by the:

Answer 11

Federal Housing Admin

Question 12

A VA loan is guaranteed by the:

Answer 12

Dept. of Veteran Affairs

Question 13

A loan made w. no government insurance or guarantee is a:

Answer 13

Conventional loan

Question 14

A loan in which the interest rate may change is a(n):

Answer 14

ARM

Question 15

Two rate adjustment indices on adjustable rate loans are:

Answer 15

1.Monthly Treasury Average (MTA)
2. prime rate

Question 16

Payments on a ________ loan include principal, interest, taxes, and insurance.

Answer 16

Budget Loan
(PITI)

Question 17

A ________ loan is a permanent loan that will pay off a construction loan and possibly a lot loan.

Answer 17

Take-Out loan

Question 18

With a(n) _______ loan, the borrower owes the exact amount borrowed.

Answer 18

Straight or Term
borrower pays interest only during the term of the loan w/ principal due at maturity

Question 19

The loan that covers more than one parcel of property is a ________ loan

Answer 19

Blanket loan

Question 20

A loan that includes personal property such as a washer and dryer:

Answer 20

Package loan

Question 21

A loan that allows a borrower to borrow more money within the same loan is a _______ loan

Answer 21

Open-End loan

Question 22

A loan which funds are advanced as building progresses is a _______ loan, also called ______ loan

Answer 22

Construction
interim

Question 23

The normal, long-term financing that pays off a construction loan is _________ loan

Answer 23

Take-out

Question 24

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

Answer 24

Gap/Swing/Bridge

Question 25

A loan in which the lender makes payments to the borrower is a ________ loan

Answer 25

RAM
Reverse Annuity