Chapter 8 Flashcards
An instrument by which property is hypothecated to secure the payment of a debt or obligation is known as
a mortgage. page 230
“The cost of using money” BEST describes
interest. page 218
RESPA regulates loans for which of the following?
One- to four-unit family dwellings. page 256
A provision that gives the lender the right to demand full payment of a mortgage upon a sale of the property is
a due-on-sale clause. pages 263-264
Real estate loans generally include a promissory note and a
security instrument. page 224
The federal agency that insures savings accounts is the
FDIC. page 230
The security instrument of choice in California is the
deed of trust. page 230
Money is a medium of exchange as well as a measure of
value. page 218
Which of the following is NOT an institutional lender?
mortgage company. page 246
The repayment of a loan in equal installments that includes both interest and principal reduction is referred to as
an amortized loan. page 243
