16. Using the rule of thumb used by lenders (each point charged raises the yield by 1/8 of 1%), 4 discount points raise the effective yield of a typical home loan bya. 1/32 of 1%.b. 2/8 of 1%.c. 1/4of 1%.d. 1/2 of 1%.17. Who normally pays the discount points when a conventional loan is taken out to purchase a residence?
18. The buyer agrees to pay $90,000 for a home, contingent upon obtaining an 80% loan. The lender charges $3,600 for points. How many points were charged?19. If a borrower paid $3,550 in points on a loan of $95,000 how many points were charged?20. Discount points are more likely to be used during periods ofa. tight money.b. available money.c. cash sales.d. seller financed sales.21. The role of the FHA in residential mortgage lending is22. Who must pay the discount points on a FHA loan?23. Under section 203(b), the FHA24. A borrower can expect to pay a mortgage insurance premium fora. an FHA insured loan.b. an 80% conventional loan.c. a graduated payment loan.d. an accelerated payment loan.25. A single woman applied for a FHA loan to buy a property she intends to use as a rental. Which if anything might cause her application to be denied?
26. Usually, the borrower of a FHA loan is also responsible for the27. On a $64,000 home, which of the following would require the largest cash down payment?28. Which government loan program will make direct loans if a qualified borrower cannot find a lender?a. FHAb. VAc. CRVd. HUD29. In the event of default and subsequent foreclosure, which borrower is responsible for making good any losses suffered?30. For a veteran to obtain a VA loan, it is necessary to have aCh.12:1. The Truth in Lending Act covers credit extended for a
2. Truth in lending laws were created primarily to protecta. consumers.b. lenders.c. beneficiaries.d. mortgagees.
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- Summer '18
- Dr. Chapman