Calculating Adjustments

Question 0

When one adds the margin to the index to find the fully indexed rate .
Make sure the adjustment (diff between proposed fully indexed rate and the current interest rate ) does not exceed the maximum adjustment cap per adjustment or over the life of the loan.

Answer 0

Adjustable Rate Loans (ARMS)

Question 1

When all dues, fees, assessments and other charges that are imposed on borrower or the property by a condominium association, or similar organization.

Answer 1

Community , association fees and assessments

Question 2

This when insurance protects a lender against the nonpayment of ,or default on, the loan.

Answer 2

Mortgage insurance

Question 3

A security instrument When all requirements and restrictions that are imposed in regard to federally related mortgage loan even if the loan does not qualify as a federally related mortgage loan

Answer 3

RESPA (Real Estate Settlement Procedures Act)