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Flashcards in Finance - Need To Know Deck (18)
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1

What kind of loan is guaranteed?

VA

2

What kind of loan is it when the mortgagee (lender) makes the payment?

Reverse annuity

3

What must a veteran first get to obtain a VA loan?

Certificate of Eligibility

4

Who are the vendor and vendee?

Seller and Buyer

5

When a developer obtains a construction loan on a subdivision, and then sells individual parcels, the loan should contain what clause?

Partial release clause

6

What kind of mortgage would a business use if both real and personal property are collateral?

Package

7

Who makes government insured loans?

Approved lenders,
*Not FHA, VA, FNMA, etc.

8

What clause in a mortgage allows the lender to adjust the interest rate?

Escalation clause

9

What is a mortgage where payments increase the first year, then level off?

Graduated

10

What is it called when the seller is the lender?

Seller finance
A.K.A Carryback

11

When a buyer uses very little of their own money to purchase a home it's called _________

Leverage

12

A couple are selling and buying a home.however they are going to close on the new home before closing on the sale of the old home. In this situation they might get what kind of loan?

A Swing, Gap, or Bridge loan.

13

A person buys a property utilizing a wrap around mortgage. What conditions will benefit the buyer?

Making payments to escrow, which in turn pays the underlying mortgage payments and the seller.

14

What is FNMA?

Fannie Mae, or the Federal National Mortgage Association.
-a major secondary money market player. It is privately owned, but federally regulated.

15

How is a certificate of estoppel used?

To obtain the loan balance of the mortgage.

16

What market condition would most likely increase the demand for rental property?

Increase in interest rates

17

What clause protects the lender's investment?

Alienation clause
A.K.A. Due on sale clause

18

What type of property is the loan secured by he property being purchased with the loan money?

Purchase money mortgage.