CHAMPIONS REAL ESTATE FINANCE EXAM WITH GUARANTEED ACCURATE ANSWERS
3 views 0 purchase
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)
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller GRADEUNITS. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $16.49. You're not tied to anything after your purchase.
