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Unformatted text preview: loan balance increases with each money payment 4. An AITD is an: A B C D. All interest trust deed Alternative investment trust deed Attenuated insurance trust deed All inclusive trust deed 5. The maximum interest rate that a lender can charge under an ARM is called the Dynasty School (www.dynastySchool.com) 9-53 REAL ESTATE FINANCE
A. B. C. D. 6. Cap. Margin. Term. Adjustment. In an ARM loan, when the initial interest rate is abnormally low it is known as the _______ rate. A. B. C. D. Index Teaser Capped Basement 7. Under an ARM loan, the distance between the actual rate paid by the borrower and the index is called the A. B. C. D. Adjustment. Cap. Term. Margin. 8. An AITD: A B C D. Is subordinate to the underlying existing loan(s) Is a junior trust deed Can be a purchase money transaction All of the above 9. The use of an owner's equity to pay scheduled payments is called: A B C D. Reverse annual mortgage Revised annual mortgage Reverse annuity money Reverse annuity mortgage 10. How much faster is a loan paid off using biweekly instead of monthly payments on a 30 years loan? A B 1/5 1/4
Licensing School for Appraisal, CPA, Contractors, Insurance, Real Estate, Notary, Nurse, Food Handlers, Tax and Securities 9-54 9: FIXED RATE MORTGAGE AND ALTERNATIVE MORTGAGE INSTRUMENTS
C D. 1/3 1/2 Answer Key: 1–D, 2–B, 3–D, 4–D, 5–A, 6–B, 7–D, 8–D, 9–D, 10–C Dynasty School (www.dynastySchool.com) 9-55 10: REGULATION OF LOAN BROKERAGE CHAPTER 10: REGULATION OF LOAN BROKERAGE PREVIEW
In this chapter we will discuss the various regulation of loan brokerage. We will learn the hard money loans differ from other loans as well as who makes these loans and why. We will also understand the basis and requirements of Article 1, 5, 6 and 7 of the real estate law. ARTICLE 1, REAL ESTATE LAW–BROKER LICENSE REQUIRED
Article 1 of Chapter 3 of the California Real Estate law, “Real Estate Regulations” defines the activities which require that a person be licensed as a real estate broker (or...
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- Spring '10