Questions

What is the FHA's minimum down payment requirement for mortgages?
Which of the following is considered one of the primary risk factors by Fannie Mae in assessing a loan application?
In most transactions financed with a land contract, what happens to legal title?
The Richardson family's stable monthly income is $6000, and their recurring liabilities come to $700 per month. If they want to qualify for a 90% conventional loan, their proposed monthly housing expense (PITI) probably should not exceed what amount?
What is a fixed-rate mortgage?
What is the term used for the situation when Ben Chan's interest rate is secured at 6.15% for closing within 60 days?
What type of loan is most likely to include a subordination clause?
Which of the following describes an FHA loan?
What federal law requires closing agents to use the uniform settlement statement form?
What does the term "points" refer to in mortgage financing?
What is the primary purpose of a mortgage?
What responsibility do Kevin Novak's parents assume by co-signing his home loan?
What typically triggers the need for private mortgage insurance?
What characterizes a jumbo mortgage?
What is the consequence if a loan applicant has a significantly lower credit score than their partner?
Which government agency oversees the Federal Housing Administration (FHA) loans?
Can gift funds be applied to the required down payment for a conventional loan?
What is a bridge loan primarily used for?
Which type of income is least likely to be considered as part of a loan applicant's stable monthly income?
What term describes the costs associated with securing a mortgage that are paid at closing?
Which statement best describes the purpose of points in financing?
Secondary financing from someone other than a family member is permitted in conjunction with an FHA loan if what condition is met?
What can a lender do if a conventional loan is assumable when the property is sold?
What is the due date for the buyer's first mortgage payment if the closing takes place on January 20?
What may a lender obtain if the proceeds from a sheriff's sale are insufficient to cover the mortgage balance?
Why was the secondary mortgage market created by the federal government?
Which type of financing is primarily derived from the equity in a property?
When calculating a loan applicant's stable monthly income, which income type may be grossed up by the underwriter?
What does charging a prepayment penalty imply in a mortgage?
What does PMI stand for in the context of home loans?
What happens to the interest rate in an adjustable-rate mortgage during the loan term?
What is the cost to the seller for a level payment temporary buy-down that reduces the buyer's interest rate by 2% for 3 years, lowering the monthly payment from $1000 to $875?
When evaluating an application for a VA guaranteed loan, what would an underwriter be particularly concerned with?
What is the purpose of the Loan-to-Value ratio?
What does the term "securitization" refer to in mortgage financing?
When can funds gifted from parents be considered for a down payment?
Which legislation passed in 2008 authorized the Treasury Department to purchase stock in and assets of failing financial institutions?
What does the term "loan-to-value ratio" (LTV) signify?
What do lenders typically evaluate in a borrower's credit history?
What is the function of escrow in mortgage transactions?
Under the Community Reinvestment Act, depository institutions are required to do what?
What is involved in "loan servicing"?
If the posts are buying a house for $254,000 with an appraised value of $255,000 and a 90% LTV, how much are they borrowing?
What is a significant benefit of a 30-year fixed-rate mortgage?
What does title insurance protect against?
In a deed of trust, who is referred to as the beneficiary?
Which of the following would an appraiser be most likely to use as a comparison sale for a sales comparison appraisal with any necessary adjustments?
What do reverse mortgages enable some elderly homeowners to do?
In a married couple applying for a conventional mortgage, which credit score will the lender use for qualification?
What does the Real Estate Settlement Procedures Act prohibit lenders from doing?
Who can assume Margo and John's FHA loan upon selling their home?
What type of loan do the Diaz's likely have if they did not make a down payment but paid a funding fee?
What type of property can a borrower purchase with an FHA insured loan through the 203B program?
What does the term "equity build-up" signify?
How does the loan-to-value ratio affect mortgage insurance requirements on conventional loans?
Which characteristic is true of a gem in relation to mortgage payments?
What is the main advantage of a fixed-rate mortgage?
What is private mortgage insurance (PMI)?
How does the Federal Reserve influence mortgage rates?
Define "amortization."
What does "prequalification" in mortgage lending involve?
What is the primary function of the secondary mortgage market?
What term describes the payment made by a borrower to reduce their interest rate for a temporary period?
What is risk-based pricing in mortgage lending?
What is a "deed in lieu of foreclosure"?
What is the significance of the Truth in Lending Act (TILA)?
What is a wrap-around mortgage?
What is the purpose of a credit report in the mortgage application process?
What is the role of a title company in real estate transactions?
According to general underwriting rules, how long must a self-employed business run profitably for income to be considered stable?
What does a promissory note establish for borrowers?
What does "underwater mortgage" indicate?
What must lenders typically provide with mortgage loan applications?
In what situation might a borrower consider a hard money loan?
What does LTV stand for in real estate financing?
Which type of loan is most likely to have a requirement for reserves after closing?
What is meant by "seller financing"?
What is a pre-approval in the mortgage process?
What is one of the main advantages of FHA loans for buyers?
What does the power of sale clause in a deed of trust allow?
What is the primary purpose of Government-Sponsored Enterprises (GSE) in residential financing?
What is the primary function of an amortization schedule?
All of the following could hurt an individual's credit score except for which action?
Which entity is considered a secondary market participant?
For an investor, what are the three key characteristics of a potential investment?
What is the purpose of a good faith estimate in the mortgage process?
What happens to a borrower's credit report after declaring bankruptcy?
What is true about a lease option arrangement?
What type of premium is required when using an FHA loan for a single-family home?
If a loan has a fixed interest rate with level monthly payments and a balloon payment at the end of the term, what type of loan is this?
What happens in wrap-around financing?
What does the term "piggyback loan" refer to?
When can a defaulting borrower redeem their property according to the statutory right of redemption?
What are real estate closing disclosures intended to provide?
In conventional financing, what do the traditional 28% and 36% income ratios represent?
What must secondary financing comply with when used in conjunction with a conventional loan?
If Buyer A is borrowing $300,000 and Buyer B is borrowing $900,000, which statement is likely true about their loan qualification?
For the Jacksons buying a home for $320,000, how much will they pay in fees for a discount fee of 3 points on their $300,000 loan?
What type of loan has a fixed interest rate for the first 5 years and an annually adjustable rate for the remainder of the term?
For a borrower to finance a single-family home with an FHA loan, what must be true?
What is the purpose of a construction loan?
Which loan type would buyers with limited closing funds most likely consider?
What term is used for funds that a lender requires a borrower to have available after closing to cover mortgage payments?
What distinguishes securities from other types of investments?
Under the Equal Credit Opportunity Act, lenders are prohibited from discriminating based on what criteria?
What is a balloon mortgage?
What purpose does a discount point serve in a mortgage loan?
Who is willing to buy loans under certain conditions?
What is the difference between a loan originator and a mortgage broker?
What are the eligibility requirements for FHA loans?
Which type of mortgage provides interest rate stability over its entire term?
What must occur before the Swansons can finalize their mortgage loan with Acme Savings?
What will a lender do with the tax and insurance portions of a monthly mortgage payment?
What is the function of an "interest rate lock"?
When analyzing a loan applicant's ability to afford a mortgage, lenders are primarily concerned with what metric?
Which of the following is NOT typically included in a mortgage loan application?
What financial factor might allow a loan applicant to exceed standard income ratio limits?
What is the primary function of a real estate investment trust (REIT)?
An advertisement that promotes home purchase loans with only 1% down must comply with which regulation?
What effect does an escrow account have on a borrower's finances?
When qualifying for a mortgage, what interest rate will the lender use for Alex Carville if the seller pays for a permanent buy down from 10% to 8%?
What is the potential benefit of using a real estate investment trust (REIT)?
What is the purpose of an escrow account?
Which Federal law primarily governs truth in advertising for mortgage loans?
In which situation would a lender not comply with underwriting guidelines of secondary market entities?
What typically happens to the loan if a co-signer is unable to pay?
Which of the following is NOT typically included in PITI?
What does "qualified mortgage" refer to?
What is the primary purpose of obtaining a title report for a property?
Which type of liability is least likely to impact a conventional loan qualification?
What document should a loan applicant bring to their initial loan interview?
Under which condition might a lender deny a mortgage application?
What is a common characteristic of Fannie Mae, Freddie Mac, and Ginnie Mae?
Which component remains unchanged during the term of an adjustable-rate mortgage?
What does a conventional mortgage typically require from the borrower?
Compared to a 30-year loan, what is generally true about a 15-year loan?
What is the most common alternative private source of lending available to home buyers?
What should the minimum cash investment for an FHA borrower reflect?
Which of the following benefits may come from being able to redeem a property after foreclosure?
How is the relationship between the total finance charge and total amount financed expressed?
Which statement about predatory lending is true?
In mortgage financing, why is the Loan-to-Value ratio important?
Which government-sponsored enterprise was placed into conservatorship in 2008?
What is an "interest-only mortgage"?
When calculating liquid assets for a loan, what will an underwriter include regarding the sale of an old home?
In qualifying a buyer for a conventional loan, which liability is least likely to be considered by the underwriter?
Who might consider temporary buy downs and hybrid ARMs beneficial?
What is another name for a due on sale clause in a real estate contract?
What is generally required for conventional loans regarding private mortgage insurance?
What type of home purchase is likely to be seen as a compensating factor for a loan application?
How is a wrap-around mortgage beneficial to the seller?
What is a subprime mortgage?
Which of the following could serve as a definition of negative amortization?
What is a VA loan?
Which of the following is true about a VA loan?
What is the primary objective of the Home Mortgage Disclosure Act (HMDA)?
What is typically a higher interest scenario in financing?
Describe the term "equity" in real estate.
What is a short sale in real estate?
Why is it important for borrowers to understand their credit score when applying for a mortgage?
What is required when using gift funds in a real estate transaction?
Which type of interest rate changes over time based on market conditions?
For VA loans, what do most lenders require regarding the loan amount?
If the Lawrences sell their home to a non-veteran who intends to assume their VA loan, which statement is true?
What is the role of the Consumer Financial Protection Bureau (CFPB) in mortgage lending?
What risk is associated with a high loan-to-value (LTV) ratio?
What is the maximum debt-to-income ratio that FHA borrowers typically should not exceed?
What defines a jumbo loan?
Which of the following is not considered a predatory lending practice?
What does the debt-to-income ratio (DTI) measure?
When a borrower converts their adjustable-rate mortgage (ARM) to a fixed-rate mortgage, what is the typical rate based on?
Which of the following best describes an amortization schedule?
Which type of income do lenders typically not count as stable income?
What prompted the introduction of long term mortgage loans?
What is underwriting in the mortgage process?
What may occur if the seller does not pay off the existing mortgage and the buyer does not assume it?
What role does the lender have in a deed of trust?
How does property appraisal influence financing?
Which provision in a mortgage allows the lender to demand immediate payment of the entire outstanding loan balance if the borrower defaults?
What is the minimum cash investment requirement for an FHA borrower?
What does "subject to" mean in a real estate financing context?
Define "foreclosure."
What is a hard money loan primarily based upon?
What is the significance of a commitment letter from a lender?
What is typically evaluated during the underwriting process?
What is a loan that does not meet Fannie Mae or Freddie Mac's underwriting guidelines called?
What are closing costs?
What does "loan modification" refer to in mortgage terms?
What do affordable housing programs involving conventional loans often have?
What is the primary purpose of an origination fee?
For how long does negative credit information typically remain on an individual's credit report after a bankruptcy?
What is interim or prepaid interest typically used for in a residential real estate transaction?
Why is it important for applicants to understand their debt to income ratio before applying for a mortgage?
How do retail lenders differ from wholesale lenders?
What defines a conventional mortgage?
Seller financing is most commonly utilized when:
What type of financing allows homeowners to borrow against the equity of their home?
What is the primary goal of the Dodd-Frank Act?
What is the purpose of an interest rate cap in an adjustable-rate mortgage (ARM)?
What characterizes an adjustable-rate mortgage (ARM)?
What is necessary for a borrower to qualify for a mortgage?
What does "REO" stand for in real estate?
If an automated underwriting system does not assign a loan application a risk classification, what can the lender do?
According to the Truth in Lending Act (Regulation Z), when must a residential lender provide a loan applicant with a disclosure statement regarding finance charges?
Which statement about private mortgage insurance (PMI) is true?
Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy