Unit 15 Quiz Attempt #4

Unit 15 Quiz Attempt #4

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*Proceed to Unit 16*

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Question 1 of 27

1. Question
Under the Federal Housing Administration (FHA) – insured, what percentage is needed for a down payment and what is the minimum credit score required?
- 2% down and 750 credit
- 0% down payment, and 620 credit score
- 3.5 % down payment and 580 credit score
- 5 % down payment and 480 credit score
- 10 % down payment and 610 credit score
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Question 2 of 27

2. Question
The borrower makes only interest payments in a loan known as
- Reverse mortgage
- Fixed-rate loan
- Adjustable-rate mortgage
- Straight term loan
- Equity mortgage
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Question 3 of 27

3. Question
What is a budget mortgage ?
- A conventional mortgage loan can be obtained with less than 20% down-payment of the purchase price through Private Mortgage Insurance.
- A typical amortized mortgage loan (PITI) that includes principal, interest, taxes and insurance in each payment. (P-principal, I interest, T taxes, I insurance)
- A loan from the equity of a home.
- A loan where the principal and interest rates remain the same over the entire life of the loan.
- None of the above
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Question 4 of 27

4. Question
Under which financing method the seller carries a portion (or sometimes all) of the loan for the buyer?
- Money back guarantee
- Does not exist
- Carry on mortgage
- Purchase-money mortgage (PMM)
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Question 5 of 27

5. Question
Which of the following are the two major types of loans?
- Arbitrary and ordinary loans
- Civilian and Military loans
- Conventional and Government Loans
- Arbitrary and government loans
- Long term and short term budgeting
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Question 6 of 27

6. Question
Which of the following is true regarding the nature of a conventional loan?
- Viewed as the most secure loans because their loan-to-value ratios are often the highest.
- Loans that are forgivable
- Has terms that do not include insurance or a guarantee from a federal agency
- These conventional loans are usually sold on the secondary mortgage market.
- Has terms that do not include insurance or a guarantee from a federal agency & These conventional loans are usually sold on the secondary mortgage market.
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Question 7 of 27

7. Question
Loans that do not meet Fannie Mae or Freddie Mac’s guidelines are known as?
- FHA
- Bridge
- Conforming
- Non-conforming
- Conventional
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Question 8 of 27

8. Question
What is a loan-to-value ratio?
- The percentage of a lender's portfolio that is composed of martgage loans.
- The ratio of borrowed principal plus total interest to the appraised value of the collateral property
- The ratio of lender's return on a mortgage loan to the value of the collateral property
- The fraction of the appraised value of the property offered as collateral which the lender is willing to lend
Correct

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Question 9 of 27

9. Question
Which of the following are methods used by the federal reserve system to regulate the money supply?
- Selling securities, printing money, and controlling lending underwriting requirement.
- Buying securities, changing the discount rate and controlling banking reserves.
- Printing money, changing interest rates and selling T-bills
- Controlling the prime rate, trading securities, and purchasing loans.
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Question 10 of 27

10. Question
What is the formula for calculating the first month’s interest rate in a growing equity mortgage?
- Principal balance MULTIPLIED by annual interest rate then DIVIDED by 12
- 12 DIVIDED by principal value PLUS monthly payment
- Monthly payment MINUS monthly interest rate
- Principal balance MINUS amount paid toward the principal
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Question 11 of 27

11. Question
Title VIII of the Civil Rights Act of 1968 applies to the sale of
- All single-family residences
- All privately owned single-family residences
- Privately owned single-family residences listed with a broker
- Privately owned single-family residences for sale by owner
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Question 12 of 27

12. Question
When terminating a balloon mortgage the payment due at termination is called a
- balloon payment
- down payment
- flexible loan
- insurance payment
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Question 13 of 27

13. Question
A _____ loan is used to calculate PMI of $220,000 home with a $28,600 down payment.
- 81%
- 90%
- 88%
- 86%
- None of the above.
Correct

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Question 14 of 27

14. Question
What type of loan requires to pay the remaining balance of the loan at a specific period?
- adjustable rate mortgage
- balloon mortgage
- promissory note
- purchase-money mortgage
Correct

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Question 15 of 27

15. Question
What would be the adjusted date on an adjustable-rate mortgage?
- the date the housing market is at equilibrium
- the date the mortgage is taken out
- the date the interest changes
- 30 days after the mortgage was taken out
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Question 16 of 27

16. Question
Government loans can be guaranteed or insured by ___
- The Rural Housing Service (RHS)
- The Federal Housing Administration (FHA)
- The Department of Veterans' Affairs (VA)
- All of the above
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Question 17 of 27

17. Question
Home equity conversion mortgage needs to paid when
- the duration of the loan has ended
- when the borrower no longer occupies the property
- when the property is sold
- when the borrower converts their equity to cash
Correct

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Question 18 of 27

18. Question
Assessing private mortgage insurance is for….
- Loans of the VA
- 98% of the FHA loans
- 79% or less on a promissory note with LTV
- the conventional loan of 95%
- none of the above
Correct

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Question 19 of 27

19. Question
CRV can be applied to which of the following loans?
- a conventional loan
- a VA loan
- A FHA loan
- a car loan
Correct

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Question 20 of 27

20. Question
The Federal National Mortgage Association (Fannie Mae) is ______
- It is the nation's largest supplier of mortgages
- privately owned
- personally chartered
- All of the above
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Question 21 of 27

21. Question
What is the time period called when a lender gives and guarantees a specific interest rate for a specific time.
- period of no return
- rate-freeze period
- lock-in period
- period at which you cannot seek other financing
Correct

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Question 22 of 27

22. Question
A no cash-out refinance is commonly reffered to as
- "rate and term refinance"
- "mortgage refinance"
- "no point refinance"
- none of the above
Correct

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Question 23 of 27

23. Question
What is a mortgage premium?
- an amount paid by a mortgager for a mortgage insurance to a government agency
- an amount paid by a mortgager for a mortgage insurance to a private agency
- an amount paid by a mortgager for a mortgage insurance to a governemnt or private agency
- All of the above
Correct

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Question 24 of 27

24. Question
A _______ is a change in your mortgage without having to refinance
- alternation
- refinement
- revision
- modification
Correct

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Question 25 of 27

25. Question
A(n) _____ participates in the secondary market.
- an institutional investor who supplies money for FHA and VA loans.
- a lender who deals exclusively in second mortgages.
- a lender of residential mortgages and deeds of trust.
- an institutional investor that buys and sells loans.
Correct

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Question 26 of 27

26. Question
_____ protects a lender’s interest in a mortgage loan with a high LTV (loan-to-value) ratio.
- the borrower's note.
- title insurance.
- impound accounts.
- private mortgage insurance.
Correct

Incorrect
Question 27 of 27

27. Question
A ________ mortgage, the principle on the loan does not need to be paid until the end of the term.
- Partially amortized loan
- Fully amortized loan
- Contract for deed
- Straight loan
Correct

Incorrect

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