Deck 7: Financing and Property Values

Question 1

Mortgage Revenue Bonds,a class of bonds called municipals,are issued by state and local governments and:

A) allow the government to purchase property for government use
B) provide an interest rate at a higher rate than corporate bonds
C) provide interest that is free of federal taxation
D) provide interest that is free from capital gains taxation

Answer 1

provide interest that is free of federal taxation

Question 2

The term "cash equivalent" value refers to:

A) the value of a residential property while it is listed
B) the amount of discount points charged by a lender
C) the value of a property if sold for all cash
D) the cash equivalency of the mortgage on a property

Answer 2

the value of a property if sold for all cash

Question 3

The term "carryback financing" refers to:

A) a motivated seller who takes back a note at a low rate in order to sell the property
B) a situation where the lender takes the property back after a default on the loan
C) an assumable loan in which a lender waives the discount points in order to complete the loan transaction
D) an assumable FHA loan

Answer 3

a motivated seller who takes back a note at a low rate in order to sell the property