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Unformatted text preview: ortion of the loan Middle portion of the loan Lower portion of the loan Entire loan 8. A straight conventional loan includes A. B. C. D. FHA insurance. A DVA guaranty. A private mortgage insurance agreement. No third party insurance or guarantees. 9. If a PMI–backed conventional loan is foreclosed, the insurer may A. A. C. D. Pay the lender the full amount of insurance. Pay off the lender in full and take over the property. Either A or B. Neither A nor B. 10. Chances are that you would get the lowest loan to value ration loan using: A. B. C. FHA financing A VA loan A Cal-Vet loan
Licensing School for Appraisal, CPA, Contractors, Insurance, Real Estate, Notary, Nurse, Food Handlers, Tax and Securities 6-26 6: HARD MONEY LOAN & CONVENTIONAL LOANS
D. Conventional financing Answer Key: 1–A, 2–C, 3–B, 4–B, 5–B, 6–D, 7–C, 8–C, 9–D, 10–C Dynasty School (www.dynastySchool.com) 6-27 7: LOAN PAYMENTS & SECONDARY MARKETS CHAPTER 7: LOAN PAYMENTS & SECONDARY MARKETS PREVIEW
This chapter covers the types of mathematical concepts most applicable to the real estate financing process. We will differentiate between a straight note and an amortized note. We will also discuss the secondary market activities. Mortgage loan brokers are engaged in the primary mortgage market when they are making the loan and in the secondary mortgage market when they are in the business of selling the loan. LOAN PAYMENT CHARACTERISTICS
A loan can be repaid in various ways – all at once, in equal installments, or by some other method. In most cases there will be interest as well as principal to be repaid. AMORTIZED LOAN
A loan which is amortized will have equal periodic payments, which are calculated to pay off the loan in full at the end of the term. Level payment plan is another name for an amortized loan. Monthly payments include both principal and interest. Interest is computed on the unpaid principal balance. Example
A borrows $5,000 from B to be repaid over 5 years, at 14...
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This note was uploaded on 12/30/2010 for the course SOC 101 taught by Professor Zhung during the Spring '10 term at Punjab Engineering College.
- Spring '10