5 S.R.

Question 0

Because the owner gives the mortgage to a lender, the owner-borrower is the _______.

Answer 0

Mortgagor

Question 1

If the property is financed with a loan, the owner-borrower gives the lender a document known as a _____ as collateral.

Answer 1

Mortgage

Question 2

The lender receives the mortgage and is therefore the _______.

Answer 2

Mortgagee

Question 3

The _____ is a period of time between default and foreclosure that allows the mortgagor to get caught up on payments.

Answer 3

Equitable redemption period

Question 4

The ______ is a period of time that allows the mortgagor to redeem the mortgage even after foreclosure by paying the entire balance of the loan.

Answer 4

Statutory redemption period

Question 5

A _______ is a contract detailing the terms of a promise by one party (the maker) to pay a sum of money to the other party (the payee).

Answer 5

Promissory note

Question 6

The ______ clause is an optional provision that gives the lender the power to foreclose without going to court.

Answer 6

Power of sale

Question 7

The ______ clause makes the entire balance of the loan due and payable for specified conditions such as not making loan payment or tax payments.

Answer 7

Acceleration

Question 8

A/an _______ clause (also known as a due on sale clause) allows the lender to accelerate the loan (declare the balance due and payable) if the property is sold or transferred.

Answer 8

Alienation

Question 9

A/an _____ clause states that the current claim on any debts will take priority over any other claims.

Answer 9

Subordination

Question 10

If a mortgage loan is ________, then a new buyer of the property can take over the loan obligation and continue making payments.

Answer 10

Assumable

Question 11

A loan is _______ by the Federal Housing Administration (FHA).

Answer 11

Insured

Question 12

A loan is ____ by the Department of Veterans Affairs (DVA).

Answer 12

Guaranteed

Question 13

If a loan is not an FHA Insured or a Guarateed DVA loan, it is called a ________ Loan.

Answer 13

Conventional

Question 14

A/an ______ mortgage includes personal property.

Answer 14

Package

Question 15

A/an _______ mortgage is used when more than one parcel is pledged.

Answer 15

Blanket

Question 16

A/an _____ mortgage allows the borrower to obtain further money advances at a later date.

Answer 16

Open-end

Question 17

A/an _______ is a loan in which the interest rate adjusts at pre-determined times, and the adjustment is based on an economic index.

Answer 17

Adjustable rate mortgage (ARM)

Question 18

The Fair Credit Reporting Act (FCRA) requires each of the three nationwide consumer reporting companies to give you a free copy of your credit report, at your request, once every _______ months.

Answer 18

12

Question 19

A homeowner can deduct ______, _______, and ________ from their taxable income when calculating their annual income taxes.

Answer 19

Mortgage interest, real estate taxes, and loan points

Question 20

When you sell your primary residence, you can make up to $_______ in non-taxable profit if you’re a single owner, and twice that if you’re married.

Answer 20

$250,000

Question 21

The three largest secondary mortgage market institutions are _______, ________, and _______.

Answer 21

Fannie Mae, Freddie Mac, and Ginnie Mae

Question 22

To convert a fraction into a _______ number, divide the top number by the bottom number.

Answer 22

Decimal

Question 23

To convert percentages into decimal numbers, move the decimal point two places to the _____ and eliminate the percent sign.

Answer 23

Left

Question 24

To convert decimals into percentages, move the decimal point two places to the _____ and insert a percent sign.

Answer 24

Right

Question 25

When asked to find a percentage of a number, the “of” means you should _________.

Answer 25

Multiply

Question 26

When costs (like taxes) or income (like rent) are split between buyer and seller at closing they are said to be _______.

Answer 26

Prorated