Ch. 11 Exam Review: Real Estate Finance (Exam B) Reported Questions Well Answered.
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Course
REAL ESTATE FINACE.
Institution
REAL ESTATE FINACE.
An eligible veteran made an offer of $52,000 to purchase a home contingent upon his obtaining a 100% VA-guaranteed loan. Four weeks after the offer was accepted, a CRV for $50,000 was issued, and the veteran was found to be qualified for a VA loan. In this case, l. The veteran may withdraw from the...
An eligible veteran made an offer of $52,000 to purchase a home contingent upon his obtaining a 100%
VA-guaranteed loan. Four weeks after the offer was accepted, a CRV for $50,000 was issued, and the
veteran was found to be qualified for a VA loan. In this case, l. The veteran may withdraw from the
transaction without penalty. ll. The veteran may purchase property by making a $2,000 down payment.
- l only
- ll only
- Both l and ll
- Neither l nor ll - correct answer Both l and ll
Fannie Mae:
- originates FHA loans in the primary mortgage market
- purchases FHA loans in the secondary mortgage market
- provides farm loans
- provides funds for FHA loans - correct answer purchases FHA loans in the
secondary mortgage market
The type of real estate loan that allows the borrower to increase the outstanding balance of a loan up to
a predetermined sum set by the lender and receive periodic additional funds is referred to as what type
of financing?
- subordinate
- open-end
- growing equity
- graduated payment - correct answer open-end
The Truth in Lending Act sets forth requirements regarding real estate loans to individuals for all of the
following purposes, EXCEPT:
- equity lines of credit
, - commercial purposes
- additions to residential properties
- installation of a backyard swimming pool - correct answer commercial purposes
Which of the following statements is TRUE?
- The priority of a mortgage is determined by the execution date.
- A mortgage document contains no covenants on the part of the borrower.
- A deed of trust is typically conveyed by the trustor to the beneficiary.
- A promissory note has to be in writing to be enforceable, but it is not normally recorded. - correct
answer A promissory note has to be in writing to be enforceable, but it is not
normally recorded.
A borrower obtained a $7,000 second mortgage loan for five years at 6% interest per annum. Monthly
debt service payments were $41.97 on a 30 year loan. The final payment included the remaining
outstanding principal balance. What type of loan is this?
- a fully amortized loan
- a straight loan
- a partially amortized loan
- an accelerated loan - correct answer a fully amortized loan
A loan from the seller to a buyer that allows the buyer to complete the transaction is called a:
Presume the interest rate on an FHA-insured mortgage loan to be 6.5% with a current monthly interest
payment of $846. What would be the current principal?
- $65,988.39
- $147,339.48
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