General Mortgage and Non Traditional Products

Question 1

USDA Loans are primarily for properties located in?

Answer 1

Rural Areas

Question 2

Term used for principle and interest payments due on a loan?

Answer 2

The amortization schedule

Question 3

Who insurers loans?

Answer 3

The FHA (Federal Housing Administration)

Question 4

What does APR mean?

Answer 4

Annual Percentage Rate

Question 5

What loan program doesn’t require credit or income documentation or repayment as long as the owner lives in the home?

Answer 5

Reverse Mortgage

Question 6

If a Veteran loan goes into foreclosure, the government will?

Answer 6

Reimburse the lender for up to the guaranteed amount of the loan

Question 7

USDA loans are for properties located in?

Answer 7

Rural areas

Question 8

Loan used to finance a property in an amount that exceeds Fannie Mae and Freddie mac’s loan amount?

Answer 8

Jumbo Loan

Question 9

The Ability to Repay Rule applies to what?

Answer 9

First-lien mortgages

Question 10

In order for a small creditor balloon payment to be a qualified mortgage, the small creditor must hold the loan in its portfolio for?

Answer 10

3 years

Question 11

MIP is used for?

Answer 11

An FHA Loan

Question 12

PFC stands for?

Answer 12

Prepaid finance charge?

Question 13

Benefits of FHA loan

Answer 13

Insured by the federal government

Question 14

What loan type has a schedule made up of a series of small periodic payments and a larger lump sum due upon maturity?

Answer 14

Balloon payment provision

Question 15

Example of an open end credit

Answer 15

HELOC

Question 16

Frannie Mae and Freddie Mac securitize what type of mortgage loans?

Answer 16

Conventional/conforming loans

Question 17

Which of the following programs does not require repayment as long as the owner livees in the home?

Answer 17

Reverse mortgage

Question 18

Loans secured by subordinate lien include?

Answer 18

Home equity line of credit, piggyback loan, home equity loan.

Question 19

another term for a junior lien

Answer 19

Subordinate lien

Question 20

what loan fails to meet Fannie Mae and Freddie Mac’s underwriting guidelines?

Answer 20

A Non conforming loan

Question 21

VA loans require what?

Answer 21

Funding fee

Question 22

What is used to determine the interest rate change on ARM?

Answer 22

Index and margin

Question 23

What loan offers a borrower a number of payment choices such as 30 or 15 year P&I, interest-only, or a 1% minimum payment

Answer 23

Option Arm

Question 24

Principal and interest payments due on a loan

Answer 24

The amortization schedule