Exam (elaborations)
(Answered) Real Estate 87 Economics Final Exam.
- Course
- Institution
Real Estate 87 Economics Final Exam, Complete questions & Answers Already graded A
[Show more]
Seller
Follow
darrelmay002
Reviews received
Content preview
Real Estate 87 Economics Final ExamQuestion 1
. Compared to a 30-year loan, a 15-year loan usually has:
B. a lower interest rate and a larger monthly payment
Question 2
What federal law requires lenders to disclose information that would help detect
instances of redlining?
C. Home Mortgage Disclosure Act
Question 3
Which of these types of income is least likely to be counted as part of a loan applicant's
stable monthly income?
B. Unemployment compensation
Question 4
A bridge loan, also called a swing or gap loan, is used to:
C. provide funds to close the purchase of a new home before the buyer's old home has
been sold
Question 5
Which federal law applies to all credit transactions and prohibits discrimination against
loan applicants?
,Correct!
A. Equal Credit Opportunity Act
Question 6
A biweekly mortgage:
Correct!
D. involves 26 half-sized payments per year instead of the 12 standard payments
Question 7
The most common alternative private source of lending to buyers is:
C. sellers
Question 8
The lender issues a certificate of reduction to:
A. acknowledge the transfer of title and waive the due-on-sale clause
B. state the balance of the loan without changing the terms of the loan
D. Both A and B
Question 9
After Fannie Mae and Freddie Mac started buying _____ loans in the mid-2000s, this
type of loan became much more popular, increasing from just a few percent of all new
mortgage loans in 1994 to as much as 20% of new loans in 2006 (when the housing
bubble began to burst).
, D. subprime
Question 10
A one-year ARM has a 60-day lookback period. Up until the last month of the rate
adjustment period, interest rates had risen 0.25%. During the last month of the
adjustment period, rates rose 0.50%. How much may the lender raise the interest rate
on the loan?
Correct!
D. 0.25%
Question 11
In certain cases, if the proceeds of a sheriff's sale aren't sufficient to pay off the
foreclosed mortgage, the lender may sue the borrower for the remainder owed. If the
court rules in the lender's favor, it will grant the lender:
C. a deficiency judgment
Question 12
Which of the following is true of Fannie Mae, Freddie Mac, and Ginnie Mae?
C. They all issue and/or guarantee mortgage-backed securities that are sold to
investors
Question 13
An ARM's margin is:
B. the difference between the index rate and the interest rate charged
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller darrelmay002. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
80796 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now