Real Estate Finance Exam 1 Actual Questions And Correct Detailed Answers.
4 views 0 purchase
Course
REAL ESTATE FINANCE.
Institution
REAL ESTATE FINANCE.
forward commitment - correct answer secondary market: bring us a loan and we will pay it based on a 3% yield for example
usury limits - correct answer usury laws were passed to keep interest rates from going too high
pr...
forward commitment - correct answer secondary market: bring us a loan and we
will pay it based on a 3% yield for example
usury limits - correct answer usury laws were passed to keep interest rates from
going too high
primary market place - correct answer where loans are originated
permanent loan - correct answer big loan you use to pay off smaller ones
(construction loans for example)
balloon annually loan - correct answer for investors (ie flips). can pay monthly
interest and then it balloons. however, you can push the date if establish new monthly interest rate at
end of term
3 year loans - correct answer can possibly get those as balloons too, but they'll
adjust the interest rate on them.
credit union - correct answer need common bond.
time deposit - correct answer savings accounts, CDs, etc.
demand deposit - correct answer checking account, etc. means can walk in at any
time and say you want money. can convert check to money. many lending decisions are based on what
is at the bank. need to adjust time of deposits to loans that are made. then can modify interest rates.
Open Market Actions of the Fed - correct answer If want to increase money supply,
buy bonds (security.) If want to slow things down, sell those securities to us. take money out of the
market.
, discount rate of interest - correct answer fee Fed charges banks to borrow money
from Fed
prime rate of interest - correct answer rate large banks charge their favored
customers on interest
reserve requirements - correct answer % fed requires banks to keep at all times.
interest rates - correct answer and that cost reflects supply and demand factors
similar to the way commodity prices do accept that demand does not always respond to a change in
price.
- cost of using other peoples' money
LIBOR - correct answer London Interbank Offered Rate
HELOC - correct answer home equity line of credit; interest rates are higher
Who demands money? - correct answer government, corporations, consumer debt
mortgage bankers - correct answer provide more services than mortgage brokers
mortgage banker services - correct answer have loan officers who originate loans
have money to fund loans
retain servicing after make mortgage
Arvest: full service mortgage banking institution.
- typically fund loan and service after it's made
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller RealGrades. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.49. You're not tied to anything after your purchase.
