Finance Exam Prep

Finance Exam Prep
A type of financing available for real estate mortgages in which the annual percentage rate will differ from year to year according to terms specified by the lender is known as:
A G.I. loan is the same as:
An instrument used to transfer title from a trustee to the equitable owner of real estate when title was held as collateral for security for a debt is most often called a/an:
Which loan is not guaranteed or insured by a government agency?
A buyer is late with the monthly mortgage payments. The lender could declare the entire unpaid loan amount due immediately under which of the following clauses?
Hypothecation refers to the pledge of the property as security for collateral for a loan. The term accretion refers to the addition of soil to property by the gradual operation of natural causes (i.e. the opposite of erosion).
A partially amortized note which reduces part of the principal by the time the final payment is due is often called a/an:
A buyer applies for a loan that is neither insured nor guaranteed by a government agency. For which type of loan is the borrower applying?
A person receiving an adjustable rate mortgage would expect to pay the:
A person with an adjustable-rate mortgage would expect the interest rate to change yearly according to terms specified by the lender. With a fixed-rate mortgage, the interest rate does not fluctuate. A straight line mortgage is a loan in which only interest is paid and then one balloon payment of principal is made at the end of the loan.
A blanket mortgage would involve which of the following?
The seizing of property by court order as security for a debt or judgment is known as:
A clause used in a mortgage allowing the lender to call for the full payment of the mortgage because the owner transferred ownership of the property to a third party is known as the:
A homeowner receives a duplicate 1099 form from the bank showing how much interest has been paid over the last year and what the principal amount is remaining on the mortgage. This document that the homeowner receives is called:
A certificate of title, also known as an opinion letter, gives an opinion stating that the title is vested in a particular individual. A certificate of sale is issued to a buyer at a judicial sale and entitles a buyer to the deed upon confirmation of sale by court. An estoppel certificate, sometimes called a certificate of no defense, is a legal instrument used by the bank to stop the mortgage and to indicate what the mortgage balance is on a certain date, after which the mortgagor has no defense unless he/she contests in a timely manner.
An alienation clause in a mortgage refers to the clause that:
Often times called the "due on the sale clause", the alienation clause says that the entire mortgage balance will be "due on the sale" of the property. The hypothecation clause is the transfer of property as a pledge of security for repayment of the debt.
Interim financing used during construction of a building followed by long term financing is called:
What type of single mortgage loan exists when two or more different parcels of property are offered as security for the loan?
The term amortization refers to: