Usury MOST nearly means - ANSWER A: illegal interest.
Each state sets its own ceiling for the maximum interest rate lenders may charge. Rates above that ceiling are considered ________ and ______. No reputable lender exceeds those rates and those that make a practice of it are commonly known as ...
MD Real Estate PSI National Exam 1
CORRECT 100%
Usury MOST nearly means - ANSWER A: illegal interest.
Each state sets its own ceiling for the maximum interest rate lenders may charge. Rates above that
ceiling are considered ________ and ______. No reputable lender exceeds those rates and those that
make a practice of it are commonly known as loan sharks. - ANSWER usurious and illegal.
Which of the following describes a mortgage that requires principal and interest payments at regular
intervals and is called the liquidation of debt by periodic installment until the debt is satisfied?
Amortized loan
Annuity loan
Acceleration loan
Assemblage loan - ANSWER Amortized loan
the most common form of mortgage where monthly payments include both principal and interest (as
opposed to balloon or interest-only seconds). Typically, monthly payment amounts remain constant,
while the interest portion is higher in the earlier years, giving homeowners a larger tax deduction with
higher percentages of principal paid in the later years. - ANSWER amortized loans
An impound or reserve account MOST benefits whom?
The borrower
The lender
The trustee
The trustor - ANSWER The lender
The transfer of real property ownership from seller to buyer, according to terms and conditions in a sales
contract or escrow agreement; the final stage in a real estate transaction. - ANSWER Settlement (also
known as Closing or Loan Consummation)
, 1. A separate account maintained by a broker for the deposit of clients' money (i.e., good faith deposits).
Also called Trust Account. 2. The account a lender maintains to hold a borrower's monthly payments for
property insurance and property tax until those bills are due. Also called Reserve Account or Impound
Account. - ANSWER Escrow Account
Also known as escrow accounts, _____________ accounts accumulate funds from closing costs and
monthly payments to ensure that property taxes and homeowner's insurance are kept current. -
ANSWER impound
The Closing Disclosure (CD) form is:
the document used to make Fair Housing complaints.
provided after signing a listing agreement.
a statement of actual charges and adjustments.
the document that must be displayed in brokerages. - ANSWER a statement of actual charges and
adjustments.
_________is a standard form in use which is used to itemize services and fees charged to the borrower
by the lender. The form is called for in the TILA RESPA Integrated Disclosure (TRID). - ANSWER The
Closing Disclosure (CD)
A VA loan may be granted for the purchase of a one-family to four-family property if
the veteran certifies the rent collected will equal the mortgage payments.
the loan will be amortized for not more than 20 years.
the down payment will be at least 10%.
the veteran agrees to live there. - ANSWER the veteran agrees to live there.
A standardized measurement expressing the true annual cost of borrowing is expressed as the what?
ECOA
AGI
APR
RESPA - ANSWER APR annual percentage rate
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