CHAP 12&13

Question 1

An upfront payment to the lender in exchange for a lower mortgage rate is called a

Answer 1

Discount Point

Question 2

The down payment plus the mortgage loan amount is called

Answer 2

Purchase price

Question 3

The rate actually received by the lender is called

Answer 3

Effective Yield

Question 4

The percentage of the property value that is represented by the loan is called

Answer 4

Loan to Value Ratio

Question 5

Methods of purchasing a house

Answer 5

Cash Sale
Assumption of the mortgage
Assumption with novation

Question 6

Substituting the sellers name with the borrowers name is called

Answer 6

Novation

Question 7

If a mortgage property is sold and the new owner has ownership without assuming person responsibility forvthe promissory note this is called

Answer 7

Subject to mortgage

Question 8

An agreement between a property owner and a potential buyer in which the owner agrees to deliver to the purchaser after certain conditions have been met this is called

Answer 8

A contract for deed

Question 9

A contract for deed is also called

Answer 9

Land contract…..
Installment contract sales contract…
Agreement for deed…
Conditional sales contract…

Question 10

A mortgage that is a single mortgage given a borrower that pledges 2 or more parcels a security for loan this loan is called

Answer 10

Blanket mortgage

Question 13

The process of risk evaluation is called

Answer 13

Mortgage underwriting