Section 3: Overview of Mortgage
Financing Solved Exam Questions and
Answers (Complete Practice Papers)
The plight of so many American families losing their homes
during the Great Depression led the government to intervene
and establish the - Correct Answers ✅Federal Housing
Administration in 1934.
A mortgage is also a collection of mortgage instruments--
papers which pledge the property as collateral. There are two
types of mortgage instruments: a mortgage and a deed of
trust. - Correct Answers ✅a mortgage and a deed of trust.
What led to many people losing their homes during the
Depression? - Correct Answers ✅People who didn't have
cash to pay for a house took out short-term loans from banks
and paid interest for 5-10 years. If they didn't have the
money to pay the remainder of the loan at the term of the
loan, they bank would foreclose on the property, and the
people lost their homes.
What led the American government to establish the FHA? -
Correct Answers ✅The plight of so many people losing
their homes during the Depression era led the government to
establish the FHA.
Define a deed. - Correct Answers ✅A deed is a legal
document that is evidence of ownership of a property.
, Section 3: Overview of Mortgage
Financing Solved Exam Questions and
Answers (Complete Practice Papers)
Explain the concept of "leverage." - Correct Answers
✅Leverage is making use of someone else's money or
making a low down payment and borrowing the rest of the
money needed for the purchase of property.
What are the two types of security instruments used for a
real estate loan, and briefly explain each. - Correct Answers
✅A promissory note is a document that establishes legal
evidence of the debt. It includes the amount of money
borrowed, the repayment terms, and conditions regarding the
borrowing of the money or the consequences of default.
The mortgage pledges the real property as collateral for the
debt.
The financial components of a mortgage loan include: -
Correct Answers ✅principal
interest and interest rate
points
term
payments
"soft" second: - Correct Answers ✅a second mortgage that
requires no payments for a certain number of years or one
Financing Solved Exam Questions and
Answers (Complete Practice Papers)
The plight of so many American families losing their homes
during the Great Depression led the government to intervene
and establish the - Correct Answers ✅Federal Housing
Administration in 1934.
A mortgage is also a collection of mortgage instruments--
papers which pledge the property as collateral. There are two
types of mortgage instruments: a mortgage and a deed of
trust. - Correct Answers ✅a mortgage and a deed of trust.
What led to many people losing their homes during the
Depression? - Correct Answers ✅People who didn't have
cash to pay for a house took out short-term loans from banks
and paid interest for 5-10 years. If they didn't have the
money to pay the remainder of the loan at the term of the
loan, they bank would foreclose on the property, and the
people lost their homes.
What led the American government to establish the FHA? -
Correct Answers ✅The plight of so many people losing
their homes during the Depression era led the government to
establish the FHA.
Define a deed. - Correct Answers ✅A deed is a legal
document that is evidence of ownership of a property.
, Section 3: Overview of Mortgage
Financing Solved Exam Questions and
Answers (Complete Practice Papers)
Explain the concept of "leverage." - Correct Answers
✅Leverage is making use of someone else's money or
making a low down payment and borrowing the rest of the
money needed for the purchase of property.
What are the two types of security instruments used for a
real estate loan, and briefly explain each. - Correct Answers
✅A promissory note is a document that establishes legal
evidence of the debt. It includes the amount of money
borrowed, the repayment terms, and conditions regarding the
borrowing of the money or the consequences of default.
The mortgage pledges the real property as collateral for the
debt.
The financial components of a mortgage loan include: -
Correct Answers ✅principal
interest and interest rate
points
term
payments
"soft" second: - Correct Answers ✅a second mortgage that
requires no payments for a certain number of years or one
