Real Estate Principles Chapter 10 Answer Key

Real Estate Principles Chapter 10 Answer Key - Real Estate...

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Real Estate Principles: A Value Approach Chapter 10 Test Problems Answer Key 1. The element of an adjustable interest rate that is the “moving part” is the: a. Teaser rate b. Index c. Margin d. Adjustment period e. None of these 2. Which of these aspects of a mortgage loan will be addressed in the note rather than in the mortgage? a. Prepayment penalty b. Escrow requirement c. Takings d. Acceleration e. Maintenance of property 3. A lender may reserve the right to require prepayment of a loan at any time they see fit through a(n): a. Taking clause b. Acceleration clause c. Demand clause d. Due-on-sale clause e. Escrow clause
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4. When a buyer of a property with an existing mortgage loan acquires the property without signing the note for the existing loan, the buyer is acquiring the property: a. By assumption b. By contract for deed c. By deed of trust d. By default e. Subject to the mortgage 5. Which of these points in a mortgage loan would be addressed in the mortgage (possibly in the note as well)? a. Loan amount b. Interest rate c. Late fees d. Escrows e. Loan term 6. To finance property where either the borrower, the property, or both fail to qualify for standard mortgage financing, a common, nonmortgage solution is through the: a. Subprime loan b. Deed of trust c. Unsecured loan d. Contract for deed
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Real Estate Principles Chapter 10 Answer Key - Real Estate...

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