Principle L 10

Principle L 10 - Lesson 10 Cumulative Quiz 1. A loan that...

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Lesson 10 Cumulative Quiz 1. A loan that doesn't meet the standards set by Fannie Mae and Freddie Mac is called: A. a nonconforming loan 2. In connection with an ARM, an index is: D. a published statistical report that indicates changes in the cost of money 3. If a loan's monthly payments do not cover all the interest owed, the lender may add the unpaid interest to the principal balance. This is called: A. negative amortization 4. Lenders use loan-to-value ratios: C. to set maximum loan amounts 5. The primary function of the Federal Housing Administration is: A. insuring mortgage loans 6. A loan's LTV expresses the relationship between the loan amount and: D. The sale price or appraisal value, whichever is less 7. Private mortgage insurance is generally required: A. for 90%, and 95% conventional loans 8. Points paid at closing to increase the lender's upfront yield on the loan are called: B. discount points 9. A qualified veteran buys a property through the Cal-Vet program. Which document
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would be used for the financing?
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Principle L 10 - Lesson 10 Cumulative Quiz 1. A loan that...

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