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Real Estate Finance Exam 4: Q&A
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Real Estate Finance Exam 4: Q&A
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Real Estate Finance Exam 4: Q&AThe parties to a deed of a trust are known as the Correct Ans - Trustor,
trustee and beneficiary
Prime Rate can be all of the following EXCEPT: Correct Ans - The
nominal interest rate plus all the lender charges
By law escrow accounts are allowed to collect tax and insurance payments in
advance, but they may contain no more than how many months additional
charges? Correct Ans - Two
Primary mortgage markets consist of all of the following except: Correct
Ans - Fannie Mae
An originator with a lender in the primary market is considered: Correct
Ans - A mortgage banker
borrowers legal right to redeem a property after a tax foreclosure is the:
Correct Ans - Statutory right of redemption
A type of loan that allowed a borrower's LTV ratio to equal or even exceed the
full purchase price of the collateral property was the: Correct Ans -
Interest only
What is the minimum down payment amount for a borrower of an FHA loan?
Correct Ans - 3.5%
A couple has a combined income of $48000 Using the 33% housing ratio, what
is the maximum monthly housing expense they will be allowed to have?
Correct Ans - $1320 (48000/12 X .33)
Lenders may be willing to waive payments temporarily but are usually
reluctant to modify or refinance the original loan agreement because of their
concern that Correct Ans - A secondary lienholder might move into the
priority position
, A borrower secures a new loan at 0.75 points above prime. If the prime rate is
8%, what is the rate of interest? Correct Ans - 8.75% (8% +0.75=
8.75%)
For a VA home loan, the lender will require a VA-assigned appraiser to
estimate the value of the property. Once completed the appraiser will issue a:
Correct Ans - Certificate of reasonable value (CRV)
LTV is the: Correct Ans - Ratio between the loan amount and the sales
price.
What is a "Lock-in clause" in a note? Correct Ans - A provision that
prohibits prepayment of the loan balance.
Freddie Mac was originally created as a secondary mortgage market for:
Correct Ans - Loan products originated by saving and loan associations.
Which of the following is the nations monetary manager? Correct Ans -
Federal Reserve
The Neighborhood Stabilization Program (NSP) was developed to provide
funds for all of the following except: Correct Ans - Low income down
payment assistance.
The lender has informed the borrowers that in order to reduce the interest
rate on their mortgage from 8% to 7 1/2%, they will have to pay three points.
Their mortgage amount is $90000. How much will they be charged?
Correct Ans - $2700 (3% X 90000 = 2700)
Which statement about Federal Housing Administration (FHA) is true?
Correct Ans - FHA insures lenders against buyer default.
Appraisals are required for all of the following except: Correct Ans -
Seller financing
The Federal Reserve influences the money supply and, therefore, interest
rates by: Correct Ans - Buying and selling treasuries
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