Unit 10 - NY real estate EXAM with 100% correct answers already graded A+ 2024

A mortgage in which the entire debt has been paid off at the end of the loan term is a fully-amortized loan Among the most basic words needed to discuss mortgages are all of the following EXCEPT A) interest. B) loan-to-value ratio. C) down payment. D) refinancing. refinancing All of the following are methods of loan payments EXCEPT A) interest only. B) fully amortized. C) partially amortized. D) partially full amortized loan. partially full amortized loan. Married joint-filer taxpayers may deduct from their income tax returns the amount of interest paid on second mortgages and equity loans on loans up to a total of $100,000. The primary mortgage loan market includes institutions that make loans to borrowers. Loans when granted and sponsored by a government agency are nonconventional loans The divorcing spouse who signs off ownership of a house that has a mortgage on it is still personally responsible for the mortgage, regardless of no longer being a part owner. In order to eliminate any responsibility for the loan, the spouse would require novation from the lender. When a mortgage is assumed and novation has not been obtained by the original borrower and the mortgage is foreclosed and the court sale does not bring enough to pay the debt in full, which of the following would apply? A) Only the assuming party is responsible. B) None of these are true. C) A deficiency judgment against both the assumer and the original borrower can be obtained for the unpaid balance. D) Only the original borrower is responsible. A deficiency judgment against both the assumer and the original borrower can be obtained for the unpaid balance. When property is mortgaged, the property owner must sign both a mortgage and a note Which is NOT a characteristic of mortgage bankers? A) Offer checking accounts B) Sell mortgage loans to investors C) Make real estate loans D) Are regulated by the state offer checking accounts Which of the following BEST describes a mortgage? A) Debenture B) Collateral C) Lien D) Note Lien The difference between the value of the property and all outstanding liens is A) equity. B) amortization. C) principle. D) interest. equity A new home cost $150,000, and the new owners borrowed $135,000 on a mortgage loan, paying $15,000 in cash as a down payment. That $15,000 now represents their equity When a mortgage is being assumed or paid off early, the borrower requires a statement from the mortgagee detailing the amount currently due. The borrower is requesting a Mortgage Reduction Certificate. First-time homebuyers who participate in Sonny Mae (SONYMA) loans receive loans made through local lending institutions An adjustable-rate mortgage (ARM) shifts the risk or reward of changing interest rates from the lender to the borrower. A mortgaged property is collateral In which of the following situations may a single taxpayer deduct from her income tax return the amount of interest paid on a mortgage loan up to a total of $500,000? Acquisition of a primary residence The down-payment represents the buyer/borrower's initial investment when purchasing a property. The clause in a mortgage that allows the lender to charge a fee for premature payments is the prepayment penalty clause. When a young man buys his house, the seller allows affordable monthly mortgage payments of interest only over 10 years' basis so that the new homeowner can handle the payments. At the end of the 10th year, however, the seller wants the whole remaining debt paid off in a balloon payment The interest deduction on mortgage loans utilized to acquire real property is deductible as long as it is used to purchase or improve a first or second residence. A borrower obtains a 30-year mortgage loan for $176,000 at 7½% interest. If monthly payments of $1,230.62 are credited first to interest and then to principal, what will be his principal balance after the first payment is made? A) $175,110.00 B) $175,123.62 C) $174,990.00 D) $175,869.38 $175,869.38 In a foreclosure sale, the real estate is to be sold to the highest bidder. What can the borrower do? The borrower has the right to redeem the property until the moment of sale by producing full payment. A lending institution may require that the buyer send in an extra monthly payment to cover future bills for property taxes and insurance premiums. According to New York law, a satisfaction of mortgage must be within 45 days of a request to do so and provide a copy to the mortgagor. The institution is required to record this document to clear title encumbered by its previous lien. The mortgagor is the borrower. The amount borrowed divided by the property value BEST describes the loan-to-value ratio. The buyer of a $96,000 property is offered a mortgage with 10% down and a loan origination fee of 1.5%. Disregarding other possible closing costs, how much cash must the buyer produce to complete the transaction? A) $1,290 B) $1,440 C) $9,600 D) $10,896 $10,896 Married joint-filer taxpayers may deduct from their income tax returns the amount of interest paid on acquisition loans on mortgage loans up to a total of $750,000. Which of the following is TRUE regarding fully-amortized loans? A) Fully-amortized loans must have a fixed interest rate. B) Most of the loan payments in the early years of the loan pay down the principal. C) Fully-amortized loans can have a fixed or adjustable rate. D) At the end of the loan term, the remaining principal is due in a balloon payment. Fully-amortized loans can have a fixed or adjustable rate. What is meant by the phrase friendly foreclosure? The lender accepts a deed from the borrower. Someone who purchases real estate and takes over the existing mortgage does so by assuming the mortgage. Which of the following foreclosure procedures is the MOST common? Judicial foreclosure A property owner of an income-producing property defaults on his mortgage. Pending a foreclosure, which of the following is an option that the lender has? The lender may also request a receiver be appointed by the courts when the liened property is income producing. Which of the following BEST describes FHA? A) Federal Housing Administration B) Federal Housing Authority C) Fair Housing Administration D) None of these Federal Housing Administration Loans originated by any lending institution would be conventional loans