Texas Real Estate Finance Updated 2025 with complete solution
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Course
Texas Real Estate Finance
Institution
Texas Real Estate Finance
The amount the borrower makes prior to any deductions for taxes or insurance is:
A) Guaranteed income
B) Net income
C) Gross income
D) Gross margin - Gross income
_______: In the Texas Constitution, a principle residence of a family or adult single person is protected
from forced sale for all...
Texas Real Estate Finance
The amount the borrower makes prior to any deductions for taxes or insurance is:
A) Guaranteed income
B) Net income
C) Gross income
D) Gross margin - Gross income
_______: In the Texas Constitution, a principle residence of a family or adult single person is protected
from forced sale for all debt except: property taxes; federal tax liens of both spouses; a home equity
lien.....etc... - Homestead
______ ______ ____: lenders use what is called a front-end ratio, which is reflected as a percentage of
their gross monthly income. The front-end ratio signifies the payment a buyer can reasonably afford
from a lender's point of view. - Front end ratios
_______ is a discriminatory practice by which banks refuse or limit loans and mortgages within specific
geographic areas, especially older or so-called "bad risk" neighborhoods, including inner-city
neighborhoods. also when a lender has refused to make a loan to a potential buyer because of the
location of the property. - Redlining
______ ____ new financing is wrapped around the existing mortgage. It is illegal for real estate agents to
write contracts with this financing. - Wraparound mortgage
___ ____ ____:a loan that allows a homeowner over the age of 62 to borrow against the equity in his
home and not repay the loan until he no longer occupies the property - Reverse annuity mortgage
___ _____ sometimes called an 'interim loan' or interim financing' - Construction mortgage
___ ____: The clause that allows the lender to alternate a second mortgage to the first position and a
first mortgage to a second position - Subordination clause
,___ offered to insure lenders against losses due to non-repayment when they made loans on both new
and resale homes. That is why the lenders benefit from offering FHA loans to buyers. the money used by
the Federal Housing Administration (FHA) loan is supplied by a qualified lending institution. - FHA
____ ___ ___ (___) is the actual interest rate the borrower pays when all the costs of obtaining credit are
included - Annual Percentage Rate (APR)
____ ___ ____ ____: a loan where the borrower pays interest only for a limited amount of time and at
the end of the term, the principle is due. - Term or straight loan
____ ____ and ______ _______ are not the same thing. - Community property and joint tenancy
____ ____ is the sale of a property where the lender agrees to settle for less than the amount owed on
the property - Short sale
____ _____: is normally used to finance the purchase of raw land. This mortgage allows the developer to
include more than one property - Blanket mortgage
____ ____: permits a home buyer to borrow money from a single lender, not only on the value of the
land and improvements, but also on the value of equipment, such as appliances - Package
mortgage
_____ ____ put a cap on interest rate. - Usuary laws
_____ _____ are created to protect the borrower. - Usuary laws
_____ _____ are loans that are over the conforming loan limit. - Jumbo loans
_____ _____ is the total of all the loans that a financial institution or other lender holds at a given time.
A list, distribution, or grouping of mortgage loans. - Loan Portfolio
, _____ ____:the origination, sales and servicing of mortgage loans by a firm or individual. -
mortgage banking
_____ is the nation's largest investor in residential mortgages. - FNMA
______ _____ are those loans that meet the loan purchase requirements of both Fannie Mae and
Freddie Mac. - Conforming loans
______ ______ ______ can be structured many ways. :fixed rate; adjustable rate; balloon -
purchase money mortgage
______ is the state law that prohibits the charging of an interest rate in excess of the legal limit. -
Usury
_______ _____ _____ _____(___) is a federal agency that insures deposits in commercial banks up to
$250,000 and , along with the Federal Reserve System, regulates banks and banking procedures. -
Federal Deposit Insurance Corporation (FDIC)
_______ _____ must belong and any state banks that wish may join the Federal Reserve System. -
National banks
_______ ______ originate loans where mortgage brokers bring together the lender and the borrower
and "arrange" the loan. - Mortgage bankers
_______ _______: is the common provision of a mortgage providing the holder with the right to demand
that the entire outstanding balance is immediately due and payable in the event of a default. -
acceleration clause
_______ ______: The clause in the mortgage allowing the purchase to take over the owner's existing
loan. the new owner does not necessarily take personal responsibility. - Assumption clause:
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