Real Estate Financing Summary Questions and Answers 2023/2024

The Federal Truth-in-Lending Law (Regulation Z) gives the borrower a 3-day right of rescission when the loan is: - ***A loan secured by a second deed of trust on owner-occupied single-family residence when the money is borrowed subsequent to the purchase. Value placed upon property for property tax purposes by the tax assessor is known as: - ***Assessed Value Let the buyer beware" is also known as, what? - ***CAVEAT EMPTOR Which of the following loans would be most likely to qualify for FHA insurance? - ***A loan to purchase 1-4 units of residential rental property The term "security interest" Is best defined as: - ***The creditors interest in the debtors property The monthly payment on a mortgage loan is, by statute, considered late when received by the lender: - ***More than 10 days after the due date Which of the following defines a mortgage loan: - ***A loan collateralized with real estate In deciding whether or not to make a specific home loan, a lender would consider which of the following factors most important: - ***The degree of risk When the general level of prices decreases: - ***The value of money increases An investor paid $300,000 for an apartment building, making a $75,000 cash down payment. One year later, the property increased 10% in value. This resulted in a $30,000 or 40% gain on the $75,000 equity. This is an example of - ***Leverage When a lender speaks of "discounting," the lender is probably referring to: - ***The loan proceeds disbursed by the lender are less than the face value of the note When the real estate market changes from a buyers market to a sellers market, which of the following results could naturally be expected: - ***Prices would rise because of the increased demand and lagging supply The term "warehousing" as used in real estate financing, means: - ***A mortgage company collecting loans prior to resale The discount points charged by a lender on a federal VA or FHA loan are a percentage of the - ***loan amount. An increase in the availability of money would lead to which effect? - ***Interest rates would go down. Which of the following is true of a second mortgage? - ***It is usually issued at a higher rate of interest. The lender is required, under RESPA, to provide a detailed "GOOD FAITH ESTIMATE" statement at the time of loan application or within three business days to: - ***the buyer Why would a lender have an appraisal on the property? - ***to assure the property value is sufficient to cover the loan When would an appraiser be least concerned about the state's economy? - ***When appraising a medical building