Exam (elaborations)
CHAPTER 7 NATIONAL REAL ESTATE EXAM PREP (CHAMPIONS SCHOOL OF REAL ESTATE) Q & S 2024-25
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CHAPTER 7 NATIONAL REAL ESTATE EXAM PREP (CHAMPIONS SCHOOL OF REAL ESTATE) Q & S 2024-25
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CHAPTER 7 NATIONAL REAL ESTATE EXAM PREP(CHAMPIONS SCHOOL OF REAL ESTATE) Q & S 2024-25
Conventional loan ANS - a loan that is neither federally insured nor guaranteed
Non-conventional loan ANS - mortgage loans through three agencies:
The federal housing Admin.
The US dept of Veteran Affairs
US Dep. of Agriculture
contract for deed (installment contract) ANS - seller financing and buyer does not get deed until the
property has been paid for in full
Mortgage ANS - Pledge of real property as a security for a promissory note.
Mortgagor ANS - borrows the money and gives the mortgage as a pledge to the lender
Mortgagee ANS - A lender in a mortgage loan transaction.
promissory note (note) ANS - Instrument for the debt. Personal promise to pay.
Lien theory ANS - States when a mortgage loan is used for the purchase of real property, at closing the
buyer receives the title and the lender has the lien.
Title theory ANS - At closing the lender receives the title and will hold it until the lien is satisfied or paid
off.
Deed of trust ANS - Contains a "power of sale" clause that allows for non-judicial foreclosure.
Primary market ANS - Where consumers go to borrow money
, Secondary market ANS - where lenders go for money
Conforming loan ANS - a standardized conventional loan written on uniform documents that meets the
purchase requirements of Fannie Mae and Freddie Mac - both loan amount and borrower
characteristics must meet the guidelines
Non-conforming loan ANS - Does not meet the secondary market guidelines. A loan unable to be sold
to Fannie Mae or Freddie Mac (ex: a sub prime loan)
Fixed-rate amortized loan ANS - Equal, regular payments of principal and interest until the loan is
repaid.
Term loans (Straight loan) ANS - Interest only until the end of the term when the entire principle is
repaid.
Blanket loan ANS - covers more than one piece of property. This loan may contain a release clause
allowing the borrower to obtain partial releases of specific lots by making required lump sum payments.
Package loan ANS - Includes real property plus personal property. (a furnished condominium)
Budget loan ANS - Includes Principle, Interest, Taxes, and Insurance (PITI) in monthly payments.
Taxes and insurance are placed in an __________ _________________. ANS - Escrow account
Loan servicer ANS - Party managing the escrow account
Balloon loan ANS - any loan in which the final payment is larger than the past payments
Participation loan ANS - Two or more lenders own a share.
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