CHAMPIONS REAL ESTATE FINANCE EXAM WITH GUARANTEED ACCURATE ANSWERS
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Course
CHAMPIONS REAL ESTATE FINANCE
Institution
CHAMPIONS REAL ESTATE FINANCE
Loan-to-Value Ratio (LTV) - ACCURATE ANSWERS The percentage of the lesser of the appraised value or sales price that the lender will lend.
Ex: If a borrower is approved for an 80% loan, it means that the lender will loan up to 80% of the sales price or appraised value, whichever is lower.
Pac...
CHAMPIONS REAL ESTATE FINANCE
EXAM
CHAMPIONS REAL ESTATE FINANCE EXAM WITH GUARANTEED ACCURATE
ANSWERS
Loan-to-Value Ratio (LTV) - ACCURATE ANSWERS✔✔ The
percentage of the lesser of the appraised value or sales price that the
lender will lend.
Ex: If a borrower is approved for an 80% loan, it means that the lender
will loan up to 80% of the sales price or appraised value, whichever is
lower.
Package Mortgage - ACCURATE ANSWERS✔✔ Includes both real
and personal property ( fixtures and furnishings)
,Blanket Mortgage - ACCURATE ANSWERS✔✔ Covers more than one
piece of property.
Wraparound Mortgage - ACCURATE ANSWERS✔✔ Method of
financing which preserves the low, existing interest rate on the original
note.
Open-End Mortgage - ACCURATE ANSWERS✔✔ Permits additional
borrowing on the same note. This is sometimes called a credit card
mortgage or a home equity line of credit - HELOC.
Budget Mortgage - ACCURATE ANSWERS✔✔ The monthly house
payment includes principal, interest, taxes and insurance (known as
PITI)
Collateral -Dependent Loans - ACCURATE ANSWERS✔✔ A hard
money loan is a specific type of asset-based financing in which a
borrower receives funds secured by the value of a parcel of real estate.
Character - ACCURATE ANSWERS✔✔ Is a measure of the willingness
of a borrower to make on-time payments. Credit character is revealed in
the borrower's credit report.
Capacity - ACCURATE ANSWERS✔✔ Is a measure of the borrower's
ability to repay the debt, and is demonstrated through current earnings
and job stability.
,Capital - ACCURATE ANSWERS✔✔ Is the sum of all assets that the
borrower has accumulated.
Collateral - ACCURATE ANSWERS✔✔ Is something of value that can
be pledged as security for repayment.
Yield - ACCURATE ANSWERS✔✔ Is the return that the investor
recieves over the life of the loan. (Also known as profit)
Originator - ACCURATE ANSWERS✔✔ The process of creating a new
mortgage loan, including all steps taken by a lender to attract and qualify
a borrower.
Mortgage Broker - ACCURATE ANSWERS✔✔ Typically functions as
a middleman between the borrower and the lender, negotiating, selling
or arranging loans to be delivered to larger investors. At one time
originated up to 80% of all mortgage loans. (Back on the rise)
Mortgage Banker - ACCURATE ANSWERS✔✔ Entities which provide
their own funds for the purpose of providing mortgage financing, as
opposed to commercial banks/savings associations. (Held, or
"Warehoused")
Correspondent Lender - ACCURATE ANSWERS✔✔ Usually smaller
in scale than mortgage bankers or brokers, these lenders typically extend
loans with their own funds, at their own risk.
, Processing - ACCURATE ANSWERS✔✔ Once application is complete
the file moves into this phase.
Underwriting - ACCURATE ANSWERS✔✔ The detailed process of
evaluating a borrower's loan application to determine the risk involved
for the lender.
Closing - ACCURATE ANSWERS✔✔ The consummation of a real
estate transaction in which all appropriate documents are signed and the
proceeds of the mortgage loan are then disbursed by the lender.
Servicing - ACCURATE ANSWERS✔✔ Includes collecting monthly
payments, maintaining records of payments and balances, collecting and
paying taxes and insurance ( and managing escrow and impound funds)
remitting funds to the note holder, and following up on delinquencies.
Supply and Demand - ACCURATE ANSWERS✔✔ an economic
concept that states that the price of a good rises and falls depending on
how many people want it and depending on how much of the good is
available.
Funding - ACCURATE ANSWERS✔✔ The process of transferring
funds to a title or escrow company for disbursement
The Safe Act - ACCURATE ANSWERS✔✔ Designed to enhance
consumer protection and reduce fraud. (Key component of HERA)
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