Adjustable rate mortgage - Study guides, Class notes & Summaries

Arizona Real Estate UPDATED Exam Questions and CORRECT Answers acceleration clause - Correct ANSWER- A clause in your mortgage which allows the lender to demand payment of the outstanding loan balance for various reasons. The most common reasons for accelerating a loan are if the borrower defaults on the loan or transfers title to another individual without informing the lender. adjustable-rate mortgage (ARM) - Correct ANSWER- A mortgage in which the interest changes periodically, ac...

Recourses of foreclosure - borrower can come back through - equity of redemption -statutory The possibility that the actual outcome will vary from what was expected when the asset was purchased. - Risk fixed amount of money paid or received at the end of every period - Ordinary annuity future cash inflow or outflow occurring only once - lump sum payment What are the four time Value of money operations - Compounding Operations 1. Future value of a lump sum 2. Future value of an annuity ...

1. bank 2. commercial bank 3. savings & loans 4. credit union 5. mortgage broker 6. mortgage banker - 1. bank - full service 2. commercial bank - originate largest amount of loans without using depositor's funds. 3. savings & loans - smaller local banks that use depositors funds to originate residential mortgage loans. AKA savings bank or thrift 4. credit union - takes deposits from members and pay dividends. Offer high interest rates to depositors and low loan rates to borrowers. 5....

GA MLS Real Estate Practical Final Exam Latest Update with Verified Solutions "Assume and Agree" to Pay Assuming borrower defaults payment, the bank will go to assuming borrower for the payment If the bank cannot collect from the assuming borrower, they will go to the original borrower "Subject to" Existing Mortgage Assuming borrower will give/pay the seller equity upfront If assuming borrower fails payment, original borrower liable Acceleration Clause The clause un a mortgag...

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...

Bob Hogue Real Estate Questions and Answers Already Passed What is the “fair housing act” designed to prevent in real estate transactions? Discrimination based on race, color, religion, sex, national origin, disability, or familial status. What is a “listing agreement” in real estate? A contract between a property owner and a real estate broker authorizing the broker to find a buyer for the property. What is a “mortgage contingency” in a real estate purchase contrac...

REAE 3325- Exam 2 (CH 9) Questions and 100% Correct Solutions REAE 3325- Exam 2 (CH 9) Questions and 100% Correct Solutions REAE 3325- Exam 2 (CH 9) Questions and 100% Correct Solutions Note - ANSWER-defines the exact terms and conditions of the load. Both the large size of real estate loan and the long maturity compel the not to be very explicit to prevent misunderstandings between the borrower and the lender Adjustable rate mortgage (ARM): - ANSWER-mortgage loans that use an adjustab...

The element of an adjustable interest rate that is the "moving part" is the: A. Teaser rate B. Index C. Margin D. Adjustment period - correct answer B. Index Which of these aspects of a mortgage loan will be addressed in the note rather than in the mortgage? A. Late fee B. Escrow requirements C. Takings D. Acceleration E. Maintenance of property - correct answer A. late fee A lender may reserve the right to require prepayment of a loan at any time they see fit through a: A. T...

In a mortgage loan, the borrower always creates two documents: a note and a mortgage. Which of the following pieces of information is provided in the mortgage? - An unambiguous description of the property that is being pledged as collateral for the loan. A significant number of mortgage loans use adjustable interest rates, in which the interest rate of the loan is tied to an index rate that fluctuates over time. For income-producing property, the most common index rate is the: - London ...

5/1 Adjustable Rate Mortgage - Answer-A 5/1 adjustable rate mortgage (ARM) or 5-year ARM is a mortgage loan where "5" is the number of years your initial interest rate will stay fixed. The "1" represents how often your interest rate will adjust after the initial five-year period ends. The most common fixed periods are 3, 5, 7, and 10 years and "1," is the most common adjustment period. It's important to carefully read the contract and ask questions if you're considering an ARM. Abilit...