General Knowledge 3

Which of the following would keep you from getting an FHA loan?

Not having a down payment

A person who brings a borrower and lender together is knows as a:

mortgage broker.

With an FHA loan, which of the following is most true concerning qualifying ratios?

Automated underwriting may approve a borrower with ratios higher than 29/41

Which of the following is not a type of payment option on a reverse mortgage?

Balloon

What part of a monthly payment cannot change on a fixed rate mortgage loan?

Interest Rate

The legal right to use someone else's land for a specific limited purpose is called an (a):

Easement

An interest rate at PAR would be?

An interest rate with no YSP or discount points

SRP stands for:

Service Release Premium.

In the mortgage business, what does the word “term” refer to?

The length of time of the loan

A neighbor building their fence on a borrower's property would be considered a:

Encroachment

A title report includes all the following except:

The amount of title insurance policy the borrower should obtain

What prevents a party from having clear title?

Encumbrance

Which of the following cannot be escrowed?

The borrower's utilities

Under a deed of trust and note, what interests do the borrower and lender hold in the property that is used as collateral?

Borrower - equitable title, Lender - a lien

The APR is the interest rate plus the finance charges computed and expressed as:

A percentage

Two people obtain a loan and buy a home, taking ownership as joint tenants. Which of the following would NOT be true?

Each owns 100%

When a borrower asks for an FHA loan, which of the following is true concerning the borrower’s credit?

The borrower will have to pay off any court-ordered judgements before an FHA loan can be closed

When a loan is immediately being sold onto the secondary market, the responsibility of “funding” belongs to the:

Primary lender

The amount by which the value of a property exceeds secured claims or liens is the borrower's:

Equity

Another type of non-conforming loans would be:

Jumbo.

What type of loan never requires monthly mortgage insurance?

A 100% VA loan

A clause in a deed or a lease to real property that limits what the owner of the land or lease can do with the property is a:

Restrictive Covenant

The borrower wants to get an FHA loan, but they have defaulted on their federal student loan payment. Which of the following represents how the student loan default will be treated?

The borrower cannot obtain an FHA loan because they have defaulted and failed to repay a federal loan.

The borrower has the right to rescind a principal dwelling loan within:

3 business days of receiving the right to rescind notice at consummation

How would you calculate LTV?

Divide the loan amount by the value of the property.