9 Loans & Qualifications

9 Loans & Qualifications - REALESTATELOANS...

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1 REAL  ESTATE  LOANS THE  PAYMENTS  ARE   HOW MUCH?
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2 CHAPTER  7 HERE  ARE  THE  ANSWERS
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3 1. A fully amortized promissory note with equal  payments to liquidate the debt would be: a.a straight note b.a principal plus interest note c. a conventional note d.an installment note D
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4 2. Sales price $120,000; $30,000 cash down;  seller carries $90,000 loan; seller continues to  pay on existing $50,000 bank loan against  the property.  The seller carry loan is: a.a first deed of trust b.a senior lien c. a wraparound deed of trust d.an institutional loan C
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5 3.  Under a deed of trust (trust deed) the lender  is the: a,beneficiary b.trustee c. trustor d.mortgagor A
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6 4. A due-on-sale clause is correctly called: a.a subordination clause b.an alienation clause c. an escalation clause d.a prepayment clause B
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7 5. Which real estate sale will make use of a  junior lien? a.all-cash sale b.buyer puts 20% down payment, obtains an  80% loan c. seller carries the first deed of trust d.buyer puts 10% percent down payment,  obtains 80% loan, seller carries a 10% second  deed of  trust D
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8 6. Under which financing instrument is the  seller known as the vendor? a.installment sales contract b.contract of sale c. agreement of sale d.all of the above D
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9 7.  Once a trustee records a notice of default,  how much time does the borrower have to  make up the delinquencies and stop the  foreclosure? a.5 days prior to sale b.90 days prior to sale c. 21 days prior to sale d.180 days prior to sale A
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10 8. The law that requires a lender in quote the  cost of borrowing as an annual percentage  rate is: a.Real Estate Settlement Procedures Act  (RESPA) b.Truth-in-Lending Act c. Equal Credit Opportunity Act d.Fair Credit Reporting Act B
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11 9. Under the Real Property Loan Law, the  maximum commission a mortgage broker can  charge for a $19,000 junior trust deed loan,  payable in 37 equal installments, is: a.$2,850 b.$1,900 c. $950 d.no maximum commission A
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12 10.  Regarding question 9, what would be the  maximum amount the borrower can be  charged for actual fees and expenses,  excluding commission, title, and recording  fees?  a.$700 b.$950 c. $390 d.no maximum amount A
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13 11. A $100,000 note at 9.5% interest, payable  $791.67 per month, is what kind of note? a.principal and interest included b.fully amortized c. accommodation d.straight D
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14 12. In a normal sale using a grant deed and deed  of trust, the buyer is the: a.grantee and trustee b.grantor and trustor c. grantee and trustor d.grantor and trustee C
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15 13.  A clause where the holder of the first loan  agrees to become a second in favor of a new  construction loan is: a.prepayment penalty b.alienation c. subordination d.subject to  C
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9 Loans & Qualifications - REALESTATELOANS...

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