ACTIVITIES EXAM QUESTIONS WITH
CORRECT ANSWERS
Loan-to-valueOratioO(LTV)O-OCORRECTOANSWERS-
TheOrelationshipObetweenOtheOloanOamountO(theOprincipal)OandOtheOvalueOofOtheOpropertyOasOaOp
ercentage.
Total-loan-to-valueO(TLTV)O-OCORRECTOANSWERS-
TheOrelationshipObetweenOaOfirstOmortgageOplusOtheOequityOlineOofOcreditOmaximumOonOaOHELOCO
andOtheOvalueOofOtheOpropertyOasOaOpercentage.
Combined-loan-to-valueO(CLTV)O-OCORRECTOANSWERS-
TheOrelationshipObetweenOallOloansObalancesOandOtheOvalueOofOtheOpropertyOasOaOpercentage.
PointsO-OCORRECTOANSWERS--shortenedOformOofOaOpercentageOpoint.
-chargedObyOlendersOtoOincreaseOtheirOyeildOorOreturnOonOaOloan.
YieldO-OCORRECTOANSWERS-AOreturnOtoOanOinvestorOonOaOmortgageOloan,OusualyOrateOplusOpoints.
EquityO-OCORRECTOANSWERS--
TheOdifferenceObetweenOtheOvalueOofOaOpieceOofOpropertyOandOtheOchargesOagainstOit.
AnnualOpercentageOrateO-OCORRECTOANSWERS--
TheOeffectiveOrate,OstatesOtheOrelationshipOofOtheOtotalOfinanceOchargeOtoOtheOamountOofOtheOloan
,OexpressedOasOanOannualOpercentage.
-amountOfinanced=OmortgageOamount+costs