BUSM 3050 Exam 3 Verified Exam Questions and Answers Latest update 2026/2027

BUSM 3050 Exam 3 Verified Exam Questions and Answers Latest
update 2026/2027

Question:
1. Accrual

Answer:
Process of accumulating interest over time on a loan.

Question:
2. Adjustable Rate

Answer:
Mortgage with an interest rate that changes periodically based on an index.

Question:
3. Amortization

Answer:
Process of paying off debt with a fixed repayment schedule.

Question:
4. Arrears

Answer:
Payments made after the due date.

Question:
5. Balloon Loan

Answer:
Loan with a large final payment after a series of smaller payments.

Question:
6. Bullet Loan

Answer:
Loan where principal is repaid at the end of the term.

Question:
7. Caps on ARMs

Answer:
Limits on interest rate changes for adjustable-rate mortgages.

, Question:
8. Deed of Trust

Answer:
Document transferring property title to a trustee until loan repayment.

Question:
9. Default

Answer:
Failure to meet the terms of a loan agreement.

Question:
10. Deficiency

Answer:
Difference between a foreclosure sale price and remaining loan balance.

Question:
11. Fixed Rate

Answer:
Mortgage with an unchanging interest rate.

Question:
12. Foreclosure

Answer:
Legal process to recover unpaid mortgage debt by selling the property.

Question:
13. Index Rate

Answer:
Benchmark interest rate used to adjust ARM rates.

Question:
14. Jumbo Loans

Answer:
Mortgages exceeding conforming loan limits.