General Mortgage and Non Traditional Products Flashcards
USDA Loans are primarily for properties located in?
Rural Areas
Term used for principle and interest payments due on a loan?
The amortization schedule
Who insurers loans?
The FHA (Federal Housing Administration)
What does APR mean?
Annual Percentage Rate
What loan program doesn’t require credit or income documentation or repayment as long as the owner lives in the home?
Reverse Mortgage
If a Veteran loan goes into foreclosure, the government will?
Reimburse the lender for up to the guaranteed amount of the loan
USDA loans are for properties located in?
Rural areas
Loan used to finance a property in an amount that exceeds Fannie Mae and Freddie mac’s loan amount?
Jumbo Loan
The Ability to Repay Rule applies to what?
First-lien mortgages
In order for a small creditor balloon payment to be a qualified mortgage, the small creditor must hold the loan in its portfolio for?
3 years
MIP is used for?
An FHA Loan
PFC stands for?
Prepaid finance charge?
Benefits of FHA loan
Insured by the federal government
What loan type has a schedule made up of a series of small periodic payments and a larger lump sum due upon maturity?
Balloon payment provision
Example of an open end credit
HELOC
Frannie Mae and Freddie Mac securitize what type of mortgage loans?
Conventional/conforming loans
Which of the following programs does not require repayment as long as the owner livees in the home?
Reverse mortgage
Loans secured by subordinate lien include?
Home equity line of credit, piggyback loan, home equity loan.
another term for a junior lien
Subordinate lien
what loan fails to meet Fannie Mae and Freddie Mac’s underwriting guidelines?
A Non conforming loan
VA loans require what?
Funding fee
What is used to determine the interest rate change on ARM?
Index and margin
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
Option Arm
Principal and interest payments due on a loan
The amortization schedule
