Exam 10: Financing

A loan in which level payments are made throughout the life of the loan is called:

Savings and loan associations primarily make conventional loans.

The clause that gives the trustee of a deed of trust the right to sell the property at public auction if the borrower defaults on his or her loan obligation is the:

Savings and loan associations are the major source of construction loans and short-term loans.

A ___ states the maximum available loan guaranty entitlement for a veteran.

Explain the way adjustable-rate loans work.

A         is a fee charged by a lender to process a loan application.

A loan payment that is composed of principal, interest, taxes, and insurance is referred to as         .

Explain the similarities and differences between FHA and VA loans.

Explain the difference between title theory and lien theory states.

The payment of mortgage insurance premiums is required when taking out a:

What financial sources are available to a prospective borrower seeking financing?

A discount point is equal to:

A promissory note is a personal obligation.

Insurance companies invest primarily in large commercial and industrial loans.

In a title theory state, the title to the real property vests in the lender until the loan obligation is satisfied.

The ___ is a federal law that establishes rules for homeowners who wish to cancel their PMI.

The following is a three-party instrument:

The period between one rate change and the next is referred to as the ____.

Explain the purpose of the Federal Truth in Lending Act.