Exam (elaborations)
Real Estate Financing (Q/A)
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Real Estate Financing (Q/A)
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Real Estate Financing (Q/A)The Federal Truth-in-Lending Law (Regulation Z) gives the borrower a 3-day
right of rescission when the loan is: Correct Ans - A loan secured by a
second deed of trust on owner-occupied single-family residence when the
money is borrowed subsequent to the purchase.
Value placed upon property for property tax purposes by the tax assessor is
known as: Correct Ans - Assessed Value
Let the buyer beware" is also known as, what? Correct Ans - CAVEAT
EMPTOR
Which of the following loans would be most likely to qualify for FHA
insurance? Correct Ans - A loan to purchase 1-4 units of residential
rental property
The term "security interest" Is best defined as: Correct Ans - The
creditors interest in the debtors property
The monthly payment on a mortgage loan is, by statute, considered late when
received by the lender: Correct Ans - More than 10 days after the due
date
Which of the following defines a mortgage loan: Correct Ans - A loan
collateralized with real estate
In deciding whether or not to make a specific home loan, a lender would
consider which of the following factors most important: Correct Ans -
The degree of risk
When the general level of prices decreases: Correct Ans - The value of
money increases
An investor paid $300,000 for an apartment building, making a $75,000 cash
down payment. One year later, the property increased 10% in value. This
resulted in a $30,000 or 40% gain on the $75,000 equity. This is an example of
Correct Ans - Leverage
, When a lender speaks of "discounting," the lender is probably referring to:
Correct Ans - The loan proceeds disbursed by the lender are less than the
face value of the note
When the real estate market changes from a buyers market to a sellers
market, which of the following results could naturally be expected:
Correct Ans - Prices would rise because of the increased demand and
lagging supply
The term "warehousing" as used in real estate financing, means: Correct
Ans - A mortgage company collecting loans prior to resale
The discount points charged by a lender on a federal VA or FHA loan are a
percentage of the Correct Ans - loan amount.
An increase in the availability of money would lead to which effect?
Correct Ans - Interest rates would go down.
Which of the following is true of a second mortgage? Correct Ans - It is
usually issued at a higher rate of interest.
The lender is required, under RESPA, to provide a detailed "GOOD FAITH
ESTIMATE" statement at the time of loan application or within three business
days to: Correct Ans - the buyer
Why would a lender have an appraisal on the property? Correct Ans -
to assure the property value is sufficient to cover the loan
When would an appraiser be least concerned about the state's economy?
Correct Ans - When appraising a medical building
The liquidation of a financial obligation on an installment basis commonly
termed: Correct Ans - Amortization
When the required payments on a real estate loan are insufficient to pay the
interest due, the result is: Correct Ans - Negative amortization
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