Flashcards in Chapter 10: The Residential Lending Process Deck (20)
The California state-sponsored residential finance program for veterans is called the:
California Veterans Farm and Home Purchase Program.
A loan structured to gradually pay off the entire loan debt by regular installment payments of principal and interest is known as a:
fully amortized loan.
A percentage amount of a loan charged at the beginning of the loan to increase the lender's yield is called:
APR refers to:
the annual percentage rate after all finance charges have been applied.
The Department of Veterans Affairs will issue a __________ based on the results of a appraisal by a VA appraiser.
Certificate of Reasonable Value (CRV)
A Cal-Vet loan: (name three correct statements about)
1. is purchased from the state under a land contract.
2.has established maximum loan amounts that vary from county to county.
3. may require the veteran to purchase life insurance.
A mortgage broker:
brings lenders and borrowers together.
The relationship, expressed as a percentage, between the loan amount and the sales price or appraised value of the property (whichever is less) is the:
In an adjustable rate mortgage, the difference between the index rate and interest rate charged to the borrower is known as the __________ .
When a property is being purchased by a veteran wanting to finance the property with a VA loan, the veteran must be in possession of a __________ obtained from the Department of Veterans Affairs.
Certificate of Eligibility
When the interest rate charged to the borrower is adjusted at specified intervals, the payment:
will increase or decrease along with the interest rate.
RESPA is a federal law that: (name three)
1. requires institutional lenders to make disclosures regarding closing costs to loan applicants.
2. requires escrow agents to prepare a Closing Disclosure.
3. governs residential real estate closings.
The Truth in Lending Act is implemented by:
__________ is the payment of discount points to reduce the interest rate on a buyer's loan.
Generally, FHA loans:(name two)
have less stringent qualifying guidelines.
Loans that meet the standard requirements of the secondary mortgage market are known as:
A conforming loan is a:
loan that meets the standard requirements to be offered for sale on the secondary market.
A REIT is:
an unincorporated association of real estate investors.
Conventional loans with a loan-to-value ratio that exceeds 80% generally require:
private mortgage insurance.