Chapter 13 - Quiz Flashcards
What kind of loan would be fully paid out over the lifetime of the loan?
Wrap Around Mortgage
Partially Amortized Loan
A Purchase Money Mortgage
Fully Amortized
Fully Amortized
If a loan is $230,000 at 10% interest over 30 years with a payment of $2225.30 (Principle and Interest) per month what is the principal balance after one month?
$226,199.73 (Dollars)
$228,083.33 (Dollars)
$229,691.37 (Dollars)
$219,774.70 (Dollars)
$229,691.37 (Dollars)
230,000 x 0.10= 23,000 annual interest 23,000/12 = 1,916.67 monthly interest 2225.30-1916.67 = 308.63 Paid to Principal. $230,000-308.63=229,691.37.
Where can a borrower obtain an FHA mortgage?
Any Qualified Lending Institution
A buyer can apply for an FHA mortgage through any Qualified Lending Institution.
Which of these is part of the VA Loan application requirement for a veteran?
Certificate of Eligibility
Driver’s License
Certificate of Service
Certificate of Occupancy
Certificate of Eligibility
A veteran must first apply for a Certificate of Eligibility in order to apply for a loan.
What does the Acronym TRID stand for?
The Real Interest Disclosure
Truthful Rates of Interest Document
The Reasonable Interest Disclosure
TILA-RESPA Integrated Disclosure
TILA-RESPA Integrated Disclosure
TILA-RESPA Integrated Disclosure (TRID) also known as the know before you owe mortgage disclosure.
RESPA is administered by which Agency?
CBFP - Consumer Bureau of Federal Protection
CFCB - Consumer Federal Credit Bureau
CFBC - Consumer Finance Bureau Control
CFPB - Consumer Financial Protection Bureau
CFPB - Consumer Financial Protection Bureau
Who would most likely obtain a Blanket Mortgage?
A developer for a sub-division
A Hospital
A developer building an assisted living facility
A Theme Park
A developer for a sub-division
A Blanket Mortgage contains a Partial Release Clause to release certain parcels when a certain amount of monies paid.
Which of the following is the basic difference between a FHA and a VA loan?
The Real Interest Disclosure
Truthful Rates of Interest Document
The Reasonable Interest Disclosure
TILA-RESPA Integrated Disclosure
VA guarantees loans; FHA insures them
The basic difference is that VA guarantees loans; FHA insures them.
The amount of a loan as a percentage of the value of the collateral offered as security is known as what?
Loan to Value Ratio
Interest Rate
Estoppel Value
Negative Amortization
Loan to Value Ratio
The LTV is equal to the loan amount divided by either the appraised or the sales contract price, whichever is less.
A man had a loan for $60,000 and he had to pay 2.5 points. How much would he have to pay in cash?
A developer for a sub-division
A Hospital
A developer building an assisted living facility
A Theme Park
$1,500 (Dollars)
1 Point = 1% of the loan amount: $60,000 x 2.5%=$1,500
