Exam (elaborations)
WRA Chapter 11 terms Financing Questions & answers
WRA Chapter 11 terms Financing Questions & answers
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WRA: Chapter 11 terms: FinancingAcceleration clause - CORRECT ANSWER-A clause within a mortgage,
permitting the lender to accelerate to upon default and declare the entire balance
due.
Adjustable rate loan - CORRECT ANSWER-Alone with a fluctuating interest rate.
There are a number of maximum increases over the life of the loan, with the
fluctuating rate based on a national index.
Amortization - CORRECT ANSWER-The gradual pain of a debt of the
symptomatic payments of the principal and interest over a predetermined period
of time.
Annual percentage rate - CORRECT ANSWER-The relationship of the total
finance charges to the total amount to be finance is required required under the
Federal Truth - in - Lending Act.
Assumable loan - CORRECT ANSWER-A financing instrument who's terms are
transferable to a party wishing to purchase the property holding the assumable
loan.
Balloon loan - CORRECT ANSWER-A loan originated with a short term of three
to seven years while being fully amortized for 30 years.
Balloon payment - CORRECT ANSWER-A lump sum payment due at the end of
the mortgage contract.
Bridge loan - CORRECT ANSWER-A residential financing arrangement in which
the buyer of a new home borrows money and gives a second mortgage on the
buyers unsold home to fund the acquisition of a new home.
Certificate of Eligibility - CORRECT ANSWER-The document a veteran received
from the Veterans Administration that establishes the maximum guaranteed to
which the veteran is entitled.
, Certificate of reasonable value - CORRECT ANSWER-Prepared by an appraiser
on va loans; it states the market value of a property.
Conventional Fiancing - CORRECT ANSWER-Financing that does not give the
lender the added security of the government guarantee or insurance.
Credit score - CORRECT ANSWER-A statistical method of assessing the credit
risk of a loan applicant.
Creditor - CORRECT ANSWER-As defined by Regulation Z, a party who are
ranges for or extend credit more than 25 times a year or more than five times a
year if the transaction is secured by a dwelling.
Deed in lieu of foreclosure - CORRECT ANSWER-A borrower needs the property
to the lender in full or partial payment of the mortgage debt. The title to be
transformed must be free of all encumbrances. Also referred to as friendly
foreclosure.
Defeassance Clause - CORRECT ANSWER-They close within a mortgage that
legally bind the lender to release the lien from the title once the mortgage has
been satisfied.
Deficiency Judgment - CORRECT ANSWER-A lien placed on a mortgagor's real
and personal property when a foreclosure sale does not satisfy the mortgage
debt.
Equitable Title - CORRECT ANSWER-The right to obtain absolute ownership to
property when legal title is held in another name.
Federal Housing Administration( FHA) - CORRECT ANSWER-A government
agency that insurance mortgage loans for financial institutions against loss in the
event of foreclosure.
Finance charges - CORRECT ANSWER-The total cost of consumer credit as a
dollar amount.
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