A balloon mortgage - Study guides, Class notes & Summaries

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...

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...

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...

Recourses of foreclosure - borrower can come back through - equity of redemption -statutory The possibility that the actual outcome will vary from what was expected when the asset was purchased. - Risk fixed amount of money paid or received at the end of every period - Ordinary annuity future cash inflow or outflow occurring only once - lump sum payment What are the four time Value of money operations - Compounding Operations 1. Future value of a lump sum 2. Future value of an annuity ...

"Barriers Free" Addition to ADA in 1991 - -any building built from 1991 onward had to be built barrier free -must make accommodations for tenants of single family residential homes at the tenants expense -landlords can require money up front, as well as monies for restorations (apartments must also comply) 1866 Civil Rights Act - -prohibits discrimination on the basis of race only -has no exceptions/exemptions to the rule 1968 Federal Fair Housing Act - -shall not discriminate on the bas...

Which of the following describes the term "appreciation"? A. Kind words expressed to someone about something they did B. An increase in the value of property C. An item of value owned by an individual D. None of the above - Answer- B. Appreciation is the increase in the value of a property due to changes in market conditions, inflation, or other causes. When ownership of a mortgage is transferred from one company or individual to another, it is called A. an assumption B. an assig...

"E-Sign Act" is short for: A. The Electronic Signatures Legitimization Act B. The Electronic Signatures in Global and National Commerce Act C. The Electronic Safety of Giving Net Authorization Act D. The Electronic Safety in Global and National Transactions Act - B. The Electronic Signatures in Global and National Commerce Act "Equity" is defined as: A. The difference between the fair market value of a property and the current balances of any liens B. The difference between the appra...

The amount the borrower makes prior to any deductions for taxes or insurance is: A) Guaranteed income B) Net income C) Gross income D) Gross margin - Gross income _______: In the Texas Constitution, a principle residence of a family or adult single person is protected from forced sale for all debt except: property taxes; federal tax liens of both spouses; a home equity lien.....etc... - Homestead ______ ______ ____: lenders use what is called a front-end ratio, which is reflected as a pe...

Objectives of Federal Reserve System To counteract inflationary and deflationary trends, to create a favorable economic climate, to maintain sound credit conditions but NOT to control the secondary mortgage market Remainder Interest A fee simple holder of a parcel of real estate grants a life estate to her daughter and stipulates that upon the daughters death, the property will pass to her grandson. The second estate is called A property buyer obtains a term loan to finance a home purchase...

Usury MOST nearly means - ANSWER A: illegal interest. Each state sets its own ceiling for the maximum interest rate lenders may charge. Rates above that ceiling are considered ________ and ______. No reputable lender exceeds those rates and those that make a practice of it are commonly known as loan sharks. - ANSWER usurious and illegal. Which of the following describes a mortgage that requires principal and interest payments at regular intervals and is called the liquidation of debt by pe...