A balloon mortgage - Study guides, Class notes & Summaries

REE3043 REVIEW TEST QUESTIONS WITH ALL CORRECT SOLUTIONS Two important advantages of automated underwriting are that it is __________ and it enables lenders to more safely make ________ loans. - Answer-Two important advantages of automated underwriting are that it is faster and it enables lenders to more safely make affordable housing loans. What two contracts are always involved in a mortgage loan? - Answer-A borrower always conveys a mortgage and a note to the lender in the mortgage loan. ...

what is a balloon mortgage? correct answers requires a borrower to make 1 large payment at the end of the loan term, which is typically 5-7 years high cost mortgages may not include a balloon payment correct answers ____________________ allows the borrower to request modification of the loan terms at maturity - borrower must qualify correct answers conditional refinance provision what is amortization? correct answers process of fully paying off a loan in regular payments over a specifi...

Lockout provisions are primarily intended to reduce the lender's Correct Answer-Reinvestment Risk Which of the following repayment mechanisms is NOT used for long term commercial mortgages? Correct Answer-Alt-A Which mortgage type is the most commonly used instrument to finance commercial property? Correct Answer-Balloon mortgage Which financing structure provides the lender with a portion of the cash flows from operation as well as scheduled mortgage payments? Correct Answer-Joint-Ven...

Which of the following describes the term "appreciation"? A. Kind words expressed to someone about something they did B. An increase in the value of property C. An item of value owned by an individual D. None of the above - B. Appreciation is the increase in the value of a property due to changes in market conditions, inflation, or other causes. When ownership of a mortgage is transferred from one company or individual to another, it is called A. an assumption B. an assignment C. an a...

f a borrower is required to pay alimony or child support, it must be included as a(n): - Asset - Liability - Qualifier - Mitigating circumstance - Answer-Liability. Alimony and child support must be included in a borrower's liabilities if they are required to pay. A lender who refuses to originate loans in a particular neighborhood or ZIP code because of the perceived creditworthiness of consumers living in the area is in violation of: - FCRA - ECOA - HOEPA - RESPA - Answer-ECOA. Re...

SC PSI REAL ESTATE EXAM PREP QUESTIONS AND ANSWERS, GRADED A+/ VERIFIED/ Which of the following describes the term appreciation? - -An increase in the value of property When ownership of a mortgage is transferred from one company or individual to another, it is called: - -An assignment A mortgage loan which requires the remaining balance be paid at a specific point in time is called a: - -Balloon mortgage The following reason accounts for why bridge loans are not used much anymore: - -Mo...

Real Estate Vocabulary Exam Please understand these are general real estate terms used in almost every state. This is here for practice and review purposes only. Some terms may not be on your exam. 1. Which of the following describes the term “appreciation”? A. Kind words expressed to someone about something they did B. An increase in the value of property C. An item of value owned by an individual D. None of the above Answer: B. Appreciation is the increase in the value...

Xinnix SOAR Final Questions With Verified Answers Graded A+ FNMA and FHLMC are what type of loan? conforming the main purpose of the Consumer financial protection bureau (CFPB) is to help consumers understand the terms of their agreements with financial companies true conventional loans are not insured by the federal government true Agency loans include FHA and VA loans true the proceeds of a loan for cash out refinance may be used by the borrower to insure a new pool t...

Taking advantage of ill-informed consumers through excessively high fees, misrepresented loan terms, frequent refinancing that does not benefit the borrower and other prohibited acts is called __________________________. - Predatory Lending. RESPA-Real Estate Settlement Procedures Act - The Federal Statute that deals with the settlement of residential mortgage loans. RESPA's section 9 Prohibits - Home sellers from requiring home buyers to purchase title insurance from a particular company...

Sally and Dan must pay 2 points on their new $65,000 loan. What will they have to pay at closing for the points? - Answer-$1,300 Nancy bought her home last year for $425,000. Her property taxes would be assessed at a maximum of: - Answer-$4,250 Patrick has a written independent contractor agreement with his broker Tami. Last year, about 25% of his income came from sales commissions. The other 75% came from an hourly wage paid by Tami. For income tax purposes, the IRS would probably classif...