A balloon mortgage - Study guides, Class notes & Summaries

A loan whose payments do not fully liquidate the loan and thus requires a large final payment, is known as 1. Partially amortized loan 2. Term loan 3. Growing equity mortgage 4. Graduated payment mortgage correct answers 1. Partially amortized loan - Repays partially, the part of the loan that hasn't been repaid yet is called a balloon payment Graduated/Growing - accelerate repayment of their fixed-rate mortgage by scheduling additional principal payments that increase over time Rea...

Loan-to-Value Ratio (LTV) - correct answer 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 - correct answer Includes both real and personal property ( fixtures and furnishings) Blanket Mortgage - correct answer Covers more than one piece of property. Wraparound Mortgage - c...

California Legal Aspects of Real Estate Final Exam (Already Graded with a pass rate of 97%) California Legal Aspects of Real Estate Final Exam (Already Graded with a pass rate of 97%) A promissory note is: a. evidence of the debt b. evidence of a sale c. a security interest in the property for the lender d. the same as a mortgage or trust deed a. evidence of the debt In order to be considered an emancipated minor and have the capacity to contract, a minor must: a. be married, widow...

A __________ is a permanent change in one or more of the terms of a borrower's loan. Loan Qualification Loan Modification Loan Approval Loan Origination - ANS IS Loan Modification What time period must borrowers have in job history with the same employer to qualify? 2 months 6 months 1 year 2 years - ANS IS 2 years Unscrupulous actions carried out by a lender to entice, induce and/or assist a borrower in taking a mortgage that carries high fees, a high interest rate, strips the borro...

Homes for All considers itself a nonprofit organization. In order for its employees to be exempt from the licensing requirements of the S.A.F.E. Act, each of the following must be true about Homes, except: A) It has tax-exempt status under the Internal Revenue Code B) Its employee compensation package does not encourage an employee to act in his or her own interests over that of his or her clients C) It promotes affordable housing D) It may engage in both nonprofit and for-profit activitie...

Texas Principles of Real Estate II (2024 / 2025) Exam | Guide with Questions and Verified Answers | 100% Correct Q: Principle of Contribution? Answer: A component part of a property is valued in proportion to its contribution to the value of the whole. Holds that maximum values are achieved when the improvements on a site produce the highest (net) return, commensurate with the investment. Q: Principle of Competition? Answer: Holds that profits tend to breed competition and excess profits tend to...

hich type of payment is made at the end of the term for a balloon mortgage? - Lump sum Noah owns an LLC that buys and sells stocks on the NASDAQ 100. He needs some additional financing. To which type of lending institution might he prefer to go? - Investment Group Victor buys a property from Yolanda for $200,000. Using a land contract, Victor agrees to pay Yolanda in monthly installments of $4,000 over the course of 50 months. Until Victor pays Yolanda the $200,000, who retains the title?...

According to the Truth-in-Lending Act, a variation up to what amount is permitted for the annual percentage rate in a regular fixed-rate mortgage transaction as quoted in the Loan Estimate? 1% .5% .125% .25% - Answer-.125% The term "subordination" refers to: The process of releasing a lien The process of recording a lien The process of one lienholder accepting inferior lien priority in favor of another The process of researching a lien - Answer-The process of one lienholder accepting...

A conventional mortgage usually involves: a.) a variable interest rate. b.) a government guarantee. c.) a balloon payment. d.) equal payments. e.) a payment cap. correct answers d A condominium involves: a.) renting a mobile home. b.) part ownership of a building by a nonprofit organization. c.) ownership of an individual living unit. d.) government-subsidized housing. e.) renting a house with the option to buy. correct answers c A mortgage where the borrow agrees to share some o...

Xinnix SOAR Final Questions With Verified Answers Graded A+ FNMA and FHLMC are what type of loan? conforming the main purpose of the Consumer financial protection bureau (CFPB) is to help consumers understand the terms of their agreements with financial companies true conventional loans are not insured by the federal government true Agency loans include FHA and VA loans true the proceeds of a loan for cash out refinance may be used by the borrower to insure a new pool t...