Comprehensive Guide for
Real Estate Investments and
Business Brokerage
** 100% Guaranteed Pass
** Expert-Verified Explanation
** Question with Correct Answer
** Latest Edition | Updated
,Primary Mortgage Market The market where mortgage loans are originated.
Secondary Mortgage Market The market where existing mortgage loans are
bought and sold.
Mortgage Banker A mortgage banker originates mortgage loans,
often using borrowed funds or warehouse lines,
and then usually sells those loans into the
secondary market.
Mortgage Broker A mortgage broker brings borrowers and lenders
together but generally does not lend their own
money.
Conventional Mortgage A standard home mortgage loan that is not insured
by the FHA and not guaranteed by the VA.
Conforming Conventional Loan A conforming conventional loan meets the
requirements for purchase by Fannie Mae or
Freddie Mac.
Nonconforming Loan A nonconforming loan does not meet Fannie Mae
or Freddie Mac purchase standards.
Jumbo Loan A mortgage loan that exceeds the conforming loan
limit.
Private Mortgage Insurance — PMI Insurance provided by private companies that
protects the lender against losses if the borrower
defaults.
FHA Mortgage A mortgage insured by the Federal Housing
Administration.
, FHA Loan-to-Value FHA allows a high loan-to-value ratio.
UFMIP — Upfront Mortgage An initial mortgage insurance charge on an FHA
Insurance Premium loan.
FHA Upfront Cash Needed How much cash the borrower must bring to
closing.
VA Mortgage A mortgage loan guaranteed by the Department of
Veterans Affairs.
Purchase Money Mortgage A mortgage given by the buyer to the seller as part
of the purchase price.
Home Equity Loan A loan secured by the borrower's equity in the
home.
HELOC An open-ended credit line secured by home
equity.
Equity Home Value - Mortgage Balance
Home Equity Line of Credit A home equity line of credit is an open-ended
(HELOC) credit line secured by home equity.
Reverse Mortgage A mortgage in which the lender makes payments
to the homeowner, usually an elderly homeowner,
and the loan balance grows over time.
Home Equity Conversion Mortgage Most common version of reverse mortgage.
(HECM)
Real Estate Investments and
Business Brokerage
** 100% Guaranteed Pass
** Expert-Verified Explanation
** Question with Correct Answer
** Latest Edition | Updated
,Primary Mortgage Market The market where mortgage loans are originated.
Secondary Mortgage Market The market where existing mortgage loans are
bought and sold.
Mortgage Banker A mortgage banker originates mortgage loans,
often using borrowed funds or warehouse lines,
and then usually sells those loans into the
secondary market.
Mortgage Broker A mortgage broker brings borrowers and lenders
together but generally does not lend their own
money.
Conventional Mortgage A standard home mortgage loan that is not insured
by the FHA and not guaranteed by the VA.
Conforming Conventional Loan A conforming conventional loan meets the
requirements for purchase by Fannie Mae or
Freddie Mac.
Nonconforming Loan A nonconforming loan does not meet Fannie Mae
or Freddie Mac purchase standards.
Jumbo Loan A mortgage loan that exceeds the conforming loan
limit.
Private Mortgage Insurance — PMI Insurance provided by private companies that
protects the lender against losses if the borrower
defaults.
FHA Mortgage A mortgage insured by the Federal Housing
Administration.
, FHA Loan-to-Value FHA allows a high loan-to-value ratio.
UFMIP — Upfront Mortgage An initial mortgage insurance charge on an FHA
Insurance Premium loan.
FHA Upfront Cash Needed How much cash the borrower must bring to
closing.
VA Mortgage A mortgage loan guaranteed by the Department of
Veterans Affairs.
Purchase Money Mortgage A mortgage given by the buyer to the seller as part
of the purchase price.
Home Equity Loan A loan secured by the borrower's equity in the
home.
HELOC An open-ended credit line secured by home
equity.
Equity Home Value - Mortgage Balance
Home Equity Line of Credit A home equity line of credit is an open-ended
(HELOC) credit line secured by home equity.
Reverse Mortgage A mortgage in which the lender makes payments
to the homeowner, usually an elderly homeowner,
and the loan balance grows over time.
Home Equity Conversion Mortgage Most common version of reverse mortgage.
(HECM)
