Finance - Review Exam (Bob Brooks) with Complete Questions & Answers!

Discount Points are figured on the: a. Selling Price b. Loan Balance c. Salary of buyer d. None of the above. - ANSWER-b. Loan Balance Which of the following is shown on an estoppel certificate? a. Unpaid balance and interest rate on mortgage. b. Time of foreclosure c. Novation of the seller. d. Any defects in the title. - ANSWER-a. Unpaid balance and interest rate on mortgage. Insurance on an FHA loan is designed to protect the: a. Government b. Lender c. Borrower d. Seller - ANSWER-b. Lender If given the choice, it's best if the Buyer assumes an existing loan: a. Assumption of b. Subject to c. Buy Down d. None of the above. - ANSWER-b. Subject to Two discount points charged on an FHA loan of $50,000 would amount to: a. $500 b. $700 c. $1,000 d. $2,000 - ANSWER-c. $1,000 To compute the dollar value of a loan discount, each point is equal to: a. 1% of the amount to be loaned. b. 1% of the down payment. c. 1% of the appraised value. d. 1% of the sales price. - ANSWER-a. 1% of the amount to be loaned. The document from a lender that gives the status of the loan such as loan balance, interest, time remaining and note is the: