C1U8 Financing Real Estate Flashcards
A $450,000 house can be purchased with a $90,000 down payment using the principle of:
a. borrowed funds
b. leveraging
c. partial financing
d. home equity
b. leveraging
The Fed can increase or decrease the amount of money in circulation by all of the following EXCEPT:
a. establishing the discount rate
b. issuing government securities
c. raising or lowering reserve requirements
d. buying and selling government securities
b. issuing government securities
Federal savings and loan activities are overseen by:
a. the FHLMC
b. the Office of the Comptroller of the Currency
c. the Federal Reserve Board
d. the FDIC
b. the Office of the Comptroller of the Currency
California usury laws apply primarily to:
a. financial institutions
b. all lenders
c. non financial institutions
d. private lenders
d. private lenders
Real estate is hypothecated by use of:
a. a promissory note
b. a negotiable instrument
c. a security instrument
d. a pledge
c. a security instrument
To be negotiable instrument, a promissory note must be:
a. a promise to pay money to the bearer
b. an oral agreement
c. payable at an indefinite future time
d. signed by the bearer
a. a promise to pay money to the bearer
A holder in due course must take a negotiable instrument:
a. within 90 days of its execution
b. with knowledge of all defenses against it
c. without notice of any defense against its enforcement
d. for cash
c. without notice of any defense against its enforcement
In a mortgage, the lender is:
a. the mortgagor
b. the mortgagee
c. the maker
d. the holder
b. the mortgagee
The highest bidder at a judicial foreclosure receives:
a. a deed
b. a contract
c. a title
d. a certificate of sale
d. a certificate of sale
In a deed of trust, the borrower is:
a. the trustor
b. the trustee
c. the beneficiary
d. the holder
a. the trustor
In a deed of trust, the lender is:
a. the trustor
b. the trustee
c. the beneficiary
d. the holder
c. the beneficiary
The first step in bringing about a trustee’s sale is to prepare:
a. a declaration of default
b. a notice of levy
c. a request for notice
d. a notice of default
a. a declaration of default
The is no right of redemption following:
a. a strict foreclosure
b. a trustee’s sale
c. a judicial foreclosure
d. a mortgage foreclosure
b. a trustee’s sale
An ARM is:
a. a graduated payment mortgage
b. a growing equity mortgage
c. a mortgage in which the interest rate changes periodically based on an index
d. a reverse annuity mortgage
c. a mortgage in which the interest rate changes periodically based on an index
MOST adjustable-rate loans are:
a. assumable
b. not assumable
c. held by sellers
d. not allowed for federal institutions
a. assumable
