Exam Pack for
Champions Real Estate
Finance
** 100% Guaranteed Pass
** Expert-Verified Explanation
** Question with Correct Answer
** Latest Edition | Updated
, Loan-to-Value Ratio (LTV) The percentage of the lesser of the appraised value or sales price that the lender
will lend.
ex: If a borrower is approved for an 80% loan, it means that the lender will loan
up to 80% of the sales price or appraised value, whichever is lower.
Package Mortgage Includes both real and personal property ( fixtures and furnishings)
Blanket Mortgage Covers more than one piece of property.
Wraparound Mortgage Method of financing which preserves the low, existing interest rate on the original
note.
Open-End Mortgage Permits additional borrowing on the same note. This is sometimes called a credit
card mortgage or a home equity line of credit - HELOC.
Budget Mortgage The monthly house payment includes principal, interest, taxes and insurance
(known as PITI)
Collateral -Dependent Loans A hard money loan is a specific type of asset-based financing in which a
borrower receives funds secured by the value of a parcel of real estate.
Character Is a measure of the willingness of a borrower to make on-time payments. Credit
character is revealed in the borrower's credit report.
Capacity Is a measure of the borrower's ability to repay the debt, and is demonstrated
through current earnings and job stability.
Capital Is the sum of all assets that the borrower has accumulated.
Collateral Is something of value that can be pledged as security for repayment.
Yield Is the return that the investor recieves over the life of the loan. (Also known as
profit)
Originator The process of creating a new mortgage loan, including all steps taken by a
lender to attract and qualify a borrower.
Mortgage Broker Typically functions as a middleman between the borrower and the lender,
negotiating, selling or arranging loans to be delivered to larger investors. At one
time originated up to 80% of all mortgage loans. (Back on the rise)
Mortgage Banker Entities which provide their own funds for the purpose of providing mortgage
financing, as opposed to commercial banks/savings associations. (Held, or
"Warehoused")
Correspondent Lender Usually smaller in scale than mortgage bankers or brokers, these lenders
typically extend loans with their own funds, at their own risk.
Champions Real Estate
Finance
** 100% Guaranteed Pass
** Expert-Verified Explanation
** Question with Correct Answer
** Latest Edition | Updated
, Loan-to-Value Ratio (LTV) The percentage of the lesser of the appraised value or sales price that the lender
will lend.
ex: If a borrower is approved for an 80% loan, it means that the lender will loan
up to 80% of the sales price or appraised value, whichever is lower.
Package Mortgage Includes both real and personal property ( fixtures and furnishings)
Blanket Mortgage Covers more than one piece of property.
Wraparound Mortgage Method of financing which preserves the low, existing interest rate on the original
note.
Open-End Mortgage Permits additional borrowing on the same note. This is sometimes called a credit
card mortgage or a home equity line of credit - HELOC.
Budget Mortgage The monthly house payment includes principal, interest, taxes and insurance
(known as PITI)
Collateral -Dependent Loans A hard money loan is a specific type of asset-based financing in which a
borrower receives funds secured by the value of a parcel of real estate.
Character Is a measure of the willingness of a borrower to make on-time payments. Credit
character is revealed in the borrower's credit report.
Capacity Is a measure of the borrower's ability to repay the debt, and is demonstrated
through current earnings and job stability.
Capital Is the sum of all assets that the borrower has accumulated.
Collateral Is something of value that can be pledged as security for repayment.
Yield Is the return that the investor recieves over the life of the loan. (Also known as
profit)
Originator The process of creating a new mortgage loan, including all steps taken by a
lender to attract and qualify a borrower.
Mortgage Broker Typically functions as a middleman between the borrower and the lender,
negotiating, selling or arranging loans to be delivered to larger investors. At one
time originated up to 80% of all mortgage loans. (Back on the rise)
Mortgage Banker Entities which provide their own funds for the purpose of providing mortgage
financing, as opposed to commercial banks/savings associations. (Held, or
"Warehoused")
Correspondent Lender Usually smaller in scale than mortgage bankers or brokers, these lenders
typically extend loans with their own funds, at their own risk.
