Chapter 13

Question 0

FHA down payment requirements is to have at least

Answer 0

3 percent

Question 1

Maximum loan amount For a single family residence in a FHA is?

Answer 1

$271,050

Question 2

UFMIP

Answer 2

Up front mortgage insurance premium

Question 3

AMIP

Answer 3

Annual mortgage insurance premium

Question 4

The UFMIP mortgage amount in most case is

Answer 4

1.5 %

Question 5

The AMIP is paid on a monthly basis and is calculated by multiplying the remaining principle balance by

Answer 5

0.5 percent, and divided by 12

Question 6

An initial interest rate stated in the promissory note that is lower than the indexed rate. Usually for the first year of the loan

Answer 6

Teaser rate

Question 7

Allows the lender to share in the income generated by the mortgage property

Answer 7

Income participation mortgage

Question 8

Allows the lender to gain a share of the appreciation in value of a mortgage property

Answer 8

Shared appreciation mortgage

Question 9

Permits the lender to share in the ownership with the borrower

Answer 9

Equity participation mortgage

Question 10

If the reserve requirement is increased, the amount of money available for lending is decreased, which may cause interest rate to

Answer 10

Increase

Question 11

An area experiencing growth, but lacking local funds to pay for the growth is called

Answer 11

Capital deficit (mutual saving bank)

Question 12

An area having an excess of funds needed locally is termed a

Answer 12

Capital surplus (mutual saving bank)

Question 13

FHA?

Answer 13

It does not make loans, it assures loans made by approved local lenders.

Question 14

Fha down payment requirements

Answer 14

At least 3 percent of their own cash in the transaction.

Question 15

VA guaranteed loans

Answer 15

Is to assist military veterans in financing the purchase of reasonably price homes. Require little down payment and low rates of interest

Question 16

Down payment on VA

Answer 16

Does not require a down payment but if veteran does not meet lenders sufficient income then a down payment is 5 percent.

Question 17

VA entitlement

Answer 17

Maximum is $104,250 but eligibility for getting is to have service in the military for 90 days. Veterans spouse are eligible too if the veteran got killed in action, died to injuries, or mission in action

Question 18

Conventional mortgage loans

Answer 18

Any loan that is not insured or guaranteed by an agency of the government. Typically requires higher down payment, higher interest rate, and higher risk in foreclosure.

Question 19

Private mortgage insurance (PMI) conventional

Answer 19

Requires this insurance when the loan amount exceeds 80 percent of the value of the property. If it’s less then 78 percent don’t need it. PMI can get you up to 95 percent loan of the value of property.

Question 20

Annual plan PMI

Answer 20

1 percent of the loan for the first year and 0.25 of 1 percent in succeeding years

Question 21

Closing cost plan PMI

Answer 21

2.5 percent of the loan amount at closing

Question 22

Blanket mortgage

Answer 22

Is a single mortgage given by a borrower that pledges two or more parcels as security of the loan. Usually contains a release clause.

Question 23

Wraparound mortgage

Answer 23

Is a new mortgage incorporated in an existing balance with an additional amount.

Question 24

Includes both real and personal property as security for a loan such as refrigerator, range, dishwasher and so on

Answer 24

Package mortgage

Question 25

Mutual saving banks

Answer 25

Organized to assist members in the financing of residential properties. Mutual saving banks state chartered and mutually owned by their depositors.