Part 8 Mortgages: Review and Valuation Flashcards
1
Q
A x DCR typically indicates a greater ability for a property to withstand a reduction of income, providing an improved safety margin for a lender.
A
larger
2
Q
DCR =
A
Io/Im
3
Q
One basis point is
A
0.01% (i.e., 1/100 of 1%).
4
Q
Each discount point is
A
1% of the original loan amount.
5
Q
One loan origination point is
A
1% of the mortgage amount.
6
Q
If the face amount is the x as the amount lent to the borrower
or paid to the seller of a mortgage,
interest rate x mortgage yield ,regardless of term.
A
same
equals
(i = Ym)
7
Q
0.24% are how many basis points?
A
24 basis points
8
Q
A
