Superior Engrade Chapter 11 A Exam Questions with Verified Answers

Superior Engrade Chapter 11 A Exam Questions with Verified Answers A homebuyer recently financed his first home with a fixed rate conventional loan. The type of interest he will pay over the life of the loan is probably -Answer-Simple interest A building was sold for $115,000. Down payment was made in the amount of $15,000 and deposited in escrow. The buyer obtained a new loan for the balance of the purchase price. The lender charged two discount points. What was the total amount charged to the buyer for the points in this purchase? -Answer-$2000 A lender is charging a borrower 6% fixed interest rate and 4 discount points. What is the yield to the investor? -Answer-6 1/2% If the lender is not paid according to the terms of a promissory note and they hold a security interest in the property through a mortgage or trust deed, which of the following options may the lender pursue? I. Renegotiate the terms and conditions of the promissory note with the borrower II. Foreclose on the property. III. File for a deficiency judgment after the foreclosure, if state law permits. -Answer-I, II,and III Which of the following statements is/are true if a buyer purchases property subject to the seller's loan and then defaults on the loan? I. The buyer is personally liable for the underlying debt. II. The seller remains personally liable for the underlined debt. -Answer-ll only Garry bought a house for $180,000 with an 85% LTV ratio. The term of the loan is 30 years at a 7% rate of interest. It will take a loan factor of 6.65 per 1000 to amortize the loan. The annual real property taxes are estimated to be $996. The annual premium for the homeowner policy is estimated to be $480. What is the monthly PITI? -Answer-$1140.45 The borrower utilizing a mortgage document is known as the: -Answer-Mortgagor How many discount points would the lender need to charge if the lender wishes to increase the yield on the loan from 9% to 10.25%? -Answer-10 points Bill and Betty just received $25,000 profit from the sale of their home. They are in the process of buying a new home for $185,500 with an 80% LTV ratio. The lender is charging the normal loan origination fee and is lending the money at 1.5 discount points. Bill and Betty pay an attorney