Unit 6 Exam Financing and Settlement UPDATED ACTUAL Questions and CORRECT Answers
1 view 0 purchase
Course
Financing and Settlement
Institution
Financing And Settlement
Unit 6 Exam Financing and Settlement
UPDATED ACTUAL Questions and
CORRECT Answers
An amortized loan ____. Which of the following is correct?1. Is the same as a budget loan if
it includes taxes and insurance 2. Allows the borrower to "re-borrow" the remaining principal
each year at the estab...
Unit 6 Exam Financing and Settlement
UPDATED ACTUAL Questions and
CORRECT Answers
An amortized loan ____. Which of the following is correct?1. Is the same as a budget loan if
it includes taxes and insurance 2. Allows the borrower to "re-borrow" the remaining principal
each year at the established interest rate until there is no principal left to borrow 3. Has a
fixed monthly payment 4. All of the above are correct. - CORRECT ANSWER✔✔- All of
the following are correct
Comparing a mortgage and deed of trust as financing security instruments, which must be
foreclosed through the courts? - CORRECT ANSWER✔✔- A mortgage
The purpose of the "final walk through" is to ____. - CORRECT ANSWER✔✔- Make sure
that no damages or changes have occurred since the inspection
You consider an ARM loan with a margin of 2% based on the current COFI Index of 4%. The
loan features a 2% annual and a 6% lifetime cap. One year from now, if the COFI index is
5%, what will your interest rate be, and what is the highest interest rate you would ever have
to pay? - CORRECT ANSWER✔✔- 7%; 12%
Within 3 days of loan application, a lender must provide a borrower an estimate of closing
costs as required by ____. - CORRECT ANSWER✔✔- RESPA (Federal)
Which of the following is NOT a primary function of the secondary market? - CORRECT
ANSWER✔✔- To loan money directly to borrowers
If an owner defaults on a mortgage payment, the lender could call the entire loan balance due
if the loan contained a(n) ____. - CORRECT ANSWER✔✔- Acceleration clause
An organization NOT engaged in the secondary mortgage market is ____. - CORRECT
ANSWER✔✔- Federal Housing Administration
, The following is true, if all debts are paid by the owner prior to the foreclosure sale date,
EXCEPT ____. 1. The foreclosure stops 2. The borrower may continue making payments as
if nothing happened 3. The borrower must have his payments made automatically by the bank
4. The borrower has paid all attorney's fees - CORRECT ANSWER✔✔- The borrower must
have his payments made automatically by the bank
Your developer client has negotiated the purchase of a lot in a commercial subdivision, with
only 10% down, and the balance being carried by the seller. However, your client must also
borrow $1,000,000 to construct a new building on the lot, with the funds coming from a
conventional commercial lender. The mortgage given to the seller will most likely contain
a(n) ____. - CORRECT ANSWER✔✔- Subordination agreement
At the trustee's sale, the trustee conveys ____ to the purchaser. - CORRECT ANSWER✔✔-
Title
In states that subscribe to the lien theory, the lender is more apt to use a ____. - CORRECT
ANSWER✔✔- Mortgage
A(n) ____originates loans as well as services them. - CORRECT ANSWER✔✔- Mortgage
company
If a church operates a separate housing facility for the elderly, it ____. - CORRECT
ANSWER✔✔- May not restrict occupancy to members of the church unless membership in
the church is open to all persons
Which of the following is NOT part of a house payment referred to as PITI? - CORRECT
ANSWER✔✔- HOA Dues
Scott purchased a home for $175,000 which has appreciated 6% each year for the four years
he has owned it. What is the current value? - CORRECT ANSWER✔✔- 175,000 x.06 =
10,500
175,000 + 10,050 = 185,500
185,500 x .06 = 11,130
185,500 + 11,130 = 196,630
196,630 x .06 = 11,797.81
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 MGRADES. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.99. You're not tied to anything after your purchase.
