Course Exam Review Flashcards
True or False:
**PMI goes with Conventional Loans and MIP goes with FHA loans?
TRUE
PMI
Private Mortgage Insurance- Conventional Loans - Only if you put less than 20% down
MIP
Mortgage Insurance Premium- FHA Loans ( doesn’t go away)
A formal assessment of value:
An Appraisal
Informal assessment of value?
CMA or BPO
True Or False:
Market Value is and ESTIMATE of Value. Market Price is a FACT.
TRUE
Market Value
An opinion of value, an ESTIMATE. ( Ex: Appraisals, CMA’s, BPO’s)
Market Price
FACTS. What homes have actually sold for.
The process of combining two lots together:
Assemblage
Pottage
RESULT or VALUE of combining (assemblage) two lots together.
Which survey system uses monuments and benchmarks?
Metes and Bounds
MONUMENTS ON A SURVEY
Tress, rocks, and other things you are describing as you walk the property.
Benchmark- Survey Metes and Bounds
Starting point of the survey
3 Approaches of Value used by appraisers
- Cost Approach
- Income Approach
- Sales Comparison Approach
Sales Comparison Approach
Used by Appraisers on 1-4 Family Properties & Land
Cost Approach
Used by Appraisers if their are no Comps.
** ONLY approach where the Appraiser uses depreciation. **
Income Approach
Used if property is bringing in Income ( 5 units or more)
3 types of Depreciation:
Physical, Functional, Economical
Physical Depreciation
Normal wear and tear
Economical Depreciation
Factors outside of the property bringing the value down
Functional Obsolescence Depreciation
Old fashion- out of style
Escrow Agent
The entity that is holding escrow money ; EX: title company or Attorney
Truth in Lending laws were created to protect:
Consumers
Fannie Mae is known as:
Federal National Mortgage Association
PITI
Principal,
Interest,
Taxes,
Insurance
Formula for the COST METHOD appraisers use is:
Land + New Construction Cost- Depreciation
The Trustee in a Deed of Trust will:
Foreclose on the property in the event of default
Deed of Trust:
Mortgage; Includes the Mortgagee (Lender), the mortgagor (Borrower), the trustee (entity for foreclosure/ release lien once paid in full)
The right to redeem a property after a mortgage foreclosure is called:
Equitable Redemption
Statutory Redemption:
Tax Foreclosure ( 2 years if you have filed your homestead/ 6 months if no homestead)
Last step for a valid Deed:
Delivery and Acceptance
Who signs the deed?
The Grantor (Owner) .. The Grantee (buyer) DOES NOT sign the deed
A mortgage that contains personal property?
Package Mortgage
Blanket Mortgage:
Mortgage that covers more than one property
Mortgage Banker
Originates, in- house, can sometimes sell
Mortgage Broker:
Middle man; sell your mortgage on secondary mortgage market;
Due on Sale Clause:
Alienation
Acceleration Clause:
Upon a certain event the whole note is Due.
A. Leasehold Estate is the Same as a :
A Non- Freehold Estate
A definite start date and end date defines this kind of lease:
Estate for Years
