Flashcards in Finance Deck (51)
A lender who originates a loan is referred to as part of the
Primary money market
Those who buy existing loans are part of the:
Secondary money market
All loans which come after a first mortgage are referred to as ______ ______
Which of the following are considered both primary and secondary lenders?
Private individuals and insurance companies
Which of the following are NOT considered primary lenders?
GNMA (Ginnie Mae) and FNMA (Fannie Mae)
FNMA provides a source of funds for approved lenders.
Sometimes secondary lenders purchase existing loans at a discount.
The Federal Reserve Bank ____________ set interest rates.
When you use as little of your own money and as much of other people's money as you can to purchase a property, that is the financial principle of ______.
. LTVR, or loan to value ratio, is determined by:
dividing the amount of the loan by the value.
A clause which allows for a new loan to take priority over one already in place is called the:
The clause which requires the lender to reconvey all interest in the property when the loan is paid off:
The right of the lender to call a loan due and payable immediately, is conveyed in the:
A blanket loan uses _______ or more parcels of real property to secure the loan.
The interest you pay on a loan is
19. The effect in the secondary money market of buying a note at a discount is to __________________ the yield to the secondary lender.
A loan where the mortgagee makes regular monthly payments to the mortgagor is a reverse annuity mortgage.
“Debt service” refers to which of the following?
Principle and Interest
The seller needs to close on the purchase of a new home prior to closing on the current home. A loan that would accommodate this is called a Bridge, Gap or Swing.
What clause is sometimes placed in a loan to protect lessees?
FNMA is privately owned and government regulated
To control the flow of money, the Federal Reserve sets the reserve requirement and establishes the discount rate, which is the ______________ they charge the banks who borrow from them.
Discount points are the same as prepaid interest and are used to lower interest rates. One point equals _____ percent. Discount points are used by a primary lender to entice the secondary lender to purchase _______ interest rate loans.
Outrageous and illegal interest is called ______________.
When your payments always include both principal and interest, and there is no balance owing at the end of the loan, this is a _____ ________ note or loan.
When your payments are interest only, and you pay off the principal all at once at the end of the loan, this is a _______ note or loan. Any payment which is larger than the scheduled monthly payment is called a balloon payment.
. If the seller carries all or part of the financing to sell the home it’s called:
Purchase money mortgage
A loan in which the payments will increase annually up to a maximum, as spelled out in the escalation clause, is referred to as a(n) ____________________ payment mortgage.
A clause used to discourage borrowers from refinancing when interest rates are falling: ______________________________ penalty clause.