What is a balloon loan - Study guides, Class notes & Summaries

Which federal law requires that the Loan Estimate be provided to the borrower within three business days of the time of loan application is taken? - ANSWER-TILA What type of scam entails homeowners who are encouraged to refinance their property over and over until little or no equity remains? - ANSWER-Loan flipping or churning After a loan closing, funds are disbursed. When are the funds disbursed for an owneroccupied, residential refinance? - ANSWER-After 3 business-day rescission period W...

SC PSI REAL ESTATE EXAM PREP QUESTIONS AND ANSWERS, GRADED A+/ VERIFIED/ Which of the following describes the term appreciation? - -An increase in the value of property When ownership of a mortgage is transferred from one company or individual to another, it is called: - -An assignment A mortgage loan which requires the remaining balance be paid at a specific point in time is called a: - -Balloon mortgage The following reason accounts for why bridge loans are not used much anymore: - -Mo...

Which of the following best describes a 2nd mortgage loan? (A) A conventional mortgage that is conforming (B) A conventional mortgage that is non-conforming (C) A conforming loan that is non-conventional (D) A non-conforming loan that is non-conventional correct answers(B) A conventional mortgage that is non-conforming WHY? Non-conforming because it is a Second Mortgage and that falls outside the Frannie Mae - Freddie Mac guidelines It is important to understand that a conforming lo...

Taking advantage of ill-informed consumers through excessively high fees, misrepresented loan terms, frequent refinancing that does not benefit the borrower and other prohibited acts is called __________________________. - Predatory Lending. RESPA-Real Estate Settlement Procedures Act - The Federal Statute that deals with the settlement of residential mortgage loans. RESPA's section 9 Prohibits - Home sellers from requiring home buyers to purchase title insurance from a particular company...

NMLS SAFE EXAM STUDY GUIDE What does TILA stand for? - Truth-In-Lending Act, Regulation Z What is a HELOC loan? - a secured loan in that you are borrowing against the equity that has been built in your house What is a REFI loan? - LTV stands for - Loan to Value Define PMI and state what the acronym stands for. - Private mortgage insurance- on conventional loans Define one time variable funding fee and people in what situations is it waived for? - Disabled veterans and survi...

Real Estate National Exam Questions and Answers 100% Pass What are considered trigger terms? Interest rate, payment amount, down payment #of payments, term of the loan, cost to close.. any financial term except APR A borrower who was making payment on a loan was required to make a balloon payment at the end of the loan. This was most likely a? Partially Amortized Loan The buyer receives a seller's property condition disclose in which the buyers agent believes the seller has misre...

Sally and Dan must pay 2 points on their new $65,000 loan. What will they have to pay at closing for the points? - Answer-$1,300 Nancy bought her home last year for $425,000. Her property taxes would be assessed at a maximum of: - Answer-$4,250 Patrick has a written independent contractor agreement with his broker Tami. Last year, about 25% of his income came from sales commissions. The other 75% came from an hourly wage paid by Tami. For income tax purposes, the IRS would probably classif...

What is created on a title if there are any problems found with the physical layout of the property or in the title search results? a cloud A loan application exists when a consumer has submitted his or her name, income, property address, estimated value of property, amount of mortgage loan sought and: Social security number Brainpower Read More What part of the Closing Disclosure details the total amount of all payments on the loan and the annual percentage rate (APR)? loan cal...

NMLS Test Questions and Answers Graded A+ What is the pass rate for the NMLS Test and how long is it? 75% of 115 questions, 125 questions long with 10 ungraded What is the biggest thing to remember about taking the test? Read the questions twice, slowly, but do not take over 30 seconds per question the first time through. Brainpower Read More Previous Play Next Rewind 10 seconds Move forward 10 seconds Unmute 0:13 / 0:15 Full screen What is the requirement under Fa...

A $2,400 term loan has a 10% annual interest rate. What is the monthly payment? - $20. A term loan is interest only. $2,400 × 0.10 = $240 240 ÷ 12 = $20 per month A 15-year-old boy recently inherited many parcels of real estate from his late father and has decided to sell one of them. If the boy enters into a deed conveying his interest in the property to a purchaser, such a conveyance would be - voidable A 50-year-old commercial building is located in the center of a 10-year-old reside...