CA Real Estate Practice- Understanding the Process of Finance
Quiz yourself by thinking what should be in
each of the black spaces below before clicking
on it to display the answer.
Help!
|
|
||||
|---|---|---|---|---|---|
| Trustor | party borrowing money
🗑
|
||||
| Beneficiary | lender
🗑
|
||||
| Trustee | Third party who holds naked legal title to property
🗑
|
||||
| Interest | the cost of borrowing money
🗑
|
||||
| Loan Origination Fee | charge based on loan amount and is collected as compensation by lender for processing the loan
🗑
|
||||
| Prevailing Market Rate | interest rate charged on conventional loans
🗑
|
||||
| Examples of Institutional Financing | savings banks, commercial banks, life insurance companies
🗑
|
||||
| Examples of Non-Institutional Financing | private individuals, credit unions, investments trusts, mortgage companies, pensions plans, land contracts
🗑
|
||||
| Examples of Government Financing | FHA (insured), VA (guaranteed), CalVet (land)
🗑
|
||||
| APR | rate that represents relationship of total finance charges and total amount financed as a percentages (actual cost of borrowing money)
🗑
|
||||
| Within how many years is a Prepayment Penalty enforceable? | first 5 years of a one-to-four unit home loan
🗑
|
||||
| Impound Account | prepaid items consisting of property taxes, hazard insurance, mortgage insurance reserves
🗑
|
||||
| Mortgage Broker | earns a fee from borrower by shopping for lenders for them
🗑
|
||||
| Prime Loan | loan to borrowers on well-located properties with good income and credit (interest rate of 2-7%)
🗑
|
||||
| Savings banks usually make which kinds of loans? | residential
🗑
|
||||
| Commercial banks usually make which kinds of loans? | general purpose: business, auto, FHA/VA, credit cards, construction
🗑
|
||||
| Life insurance companies usually make which kinds of loans? | big money: shopping centers, office buildings, hotels
🗑
|
||||
| What is the FICO score of a Subprime Borrower | 650 or below
🗑
|
||||
| A borrowers total mortgage should not exceed what percent of their gross income? | 25-30%
🗑
|
||||
| Adjustable Rate Mortgages (ARMs) are usually based upon...? | index
🗑
|
||||
| Negative Amortization | monthly payments are insufficient to pay interest so that unpaid interest is added to principal
🗑
|
||||
| Secondary Mortgage Market | financial institutions buy & sell first mortgages to and from other financial institutions
🗑
|
||||
| What does Fannie Mae (FNMA) stand for? | Federal National Mortgage Association
🗑
|
||||
| Jumbo Loan | loan amount higher than Fannie Mae & Freddie Mac loan limit
🗑
|
||||
| Name the 3 primary sources of government financing | FHA, VA, and CalVet
🗑
|
||||
| Certificate of Reasonable Value (CRV) | appraisal of property a veteran wishes to buy
🗑
|
||||
| Formula for Qualifying a Buyer is... | gross monthly income x 43% - fixed debt
🗑
|
||||
| Truth in Lending Act (Regulation Z) | lets borrowers and clients know the cost of credit so they can compare
🗑
|
||||
| Junior Loans / Secondary Financing | secured by a second trust deed or mortgage and any other loans on a property that come after the first or prime security
🗑
|
||||
| Alienation Clause | if property is sold or default occurs, the entire note becomes due and payable (ARMs fully assumable)
🗑
|
||||
| Balloon Payment | junior trust deed loans that are not self-amortizing will require large payment to satisfy remainder of loan
🗑
|
||||
| Land Contract (contract of sale) | seller retains legal title until buyer has paid most or all
🗑
|
||||
| Loan Assumption | buyer pays part or all equity and assumes responsibility of existing loan
🗑
|
||||
| Equity | difference between market value and existing loan(s)
🗑
|
||||
| Subject To | agreement to take over and make loan payments or lose property
🗑
|
||||
| Taking title "subject to" can trigger which clause? | Alienation Clause
🗑
|
||||
| Which loans are usually not assumable? | conventional fix loans
🗑
|
||||
| Licensed agents who can negotiable mortgage loans for a fee must obtain what first from CalBRE? | MLO License Endorsement
🗑
|
||||
| How long must you keep a Mortgage Loan Disclosure Statement (MS)? | 3 years
🗑
|
||||
| Usury | a charge more than legally permitted percent of interest
🗑
|
||||
| Real Estate Owned (REO) Property | property which is in possession of lender as a result of foreclosure
🗑
|
||||
| Short Sale | lender accepts less than what is owed on a loan
🗑
|
Review the information in the table. When you are ready to quiz yourself you can hide individual columns or the entire table. Then you can click on the empty cells to reveal the answer. Try to recall what will be displayed before clicking the empty cell.
To hide a column, click on the column name.
To hide the entire table, click on the "Hide All" button.
You may also shuffle the rows of the table by clicking on the "Shuffle" button.
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.
To hide a column, click on the column name.
To hide the entire table, click on the "Hide All" button.
You may also shuffle the rows of the table by clicking on the "Shuffle" button.
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Created by:
lbrito0610
Popular Real Estate sets