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Unformatted text preview: ifying ratios? Will the lender accept a CLTA title insurance policy? Assumability? Under what terms? Prepayment penalties? Dynasty School (www.dynastySchool.com) 15-23 REAL ESTATE FINANCE CHAPTER QUIZ
1. Replacing an existing loan with a new one is called: A. B. C. D. 2. Assumption “Subject to” Refinancing Prequalifying Common reasons for refinancing include: A. B. C. D. Paying off a balloon payment Getting a lower interest rate Turning equity into tax–free income All of the above 3. As a general rule, it pays to refinance when the new interest rate will be at least _ _ % lower and the costs will be recaptured from lower monthly payments within ___ months: A. B. C. D. 5, 24 2, 36 2, 24 1, 36 4. Costs of refinancing commonly include: A. B. C. D. New title insurance policy Application fee Points All of the above 5. The home equity loan or line of credit is a form A. B. C. D. Second mortgage Consumer loan Unsecured loan Home acquisition indebtedness 15-24 Licensing School for Appraisal, CPA, Contractors, Insurance, Real Estate, Notary, Nurse, Food Handlers, Tax and Securities 15: REFINANCING OR NOT AND CHOOSING A LENDER
6. Refinancing can enhance the salability of a property: A. B. C. D. 7. With a large new assumable loan on good terms Only for a speculative investor By getting an ARM with a low teaser rate Almost never Reasons not to refinance include: A. B. C. D. Good existing terms Prepayment penalties Little increase in equity since previous financing All of the above 8. The home equity loan or line of credit originated because of: A. B. C. D. Increasing scarcity of consumer credit New federal rules on deductibility of interest Problems with foreclosures on balloon payments Widespread fear of refinancing 9. The maximum amount of a home equity line of credit is usually: A. B. C. D. The appraised value of the home 75% of the appraised value of the home 75% of the appraised value of the home, less existing mortgage debt $100,000 10. For a home equity loan or line of credit, the Truth in Lending...
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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