Chapter 14 Quiz
Mortgages & Financing
Sign in to Google to save your progress. Learn more
Email *
When a buyer "assumes and agrees to pay" an existing loan on the property.
1 point
Clear selection
In a purchase money mortgage:
1 point
Clear selection
The loan-value ratio relates the loan to:
1 point
Clear selection
The dollar value of a discount point is:
1 point
Clear selection
A mortgage is discharged by all of the following EXCEPT:
1 point
Clear selection
A clause in a mortgage which permits the lender to call the entire balance due if the property is sold or otherwise conveyed by the mortgagor is called:
1 point
Clear selection
A buyer who is willing to pay more than the FHA loan amount can do which of the following?
1 point
Clear selection
A prospective home purchaser:
1 point
Clear selection
Where a seller is relieved of all obligations under a mortgage which the buyer is assuming, this would be best described as which of the following?
1 point
Clear selection
The acceleration clause in a promissory note provides:
1 point
Clear selection
Of the following, whose interest is benefited by an acceleration clause in a mortgage note?
1 point
Clear selection
Which of the following mortgage plans would provide the purchaser with the lowest down payment?
1 point
Clear selection
Discount points paid in connection with conventional loans are paid to the:
1 point
Clear selection
Which of the following mortgage plans would provide the homeowner with monthly payments from the mortgagee?
1 point
Clear selection
When a mortgage is taken over by assumption:
1 point
Clear selection
The note, as distinguished from the mortgage, creates:
1 point
Clear selection
The money for making Federal Fair Housing Administration (FHA) loans is supplied by:
1 point
Clear selection
The interest an owner of property has over and above the mortgage indebtedness is called:
1 point
Clear selection
Under a Veterans Administration loan:
1 point
Clear selection
A function of the FHA is to:
1 point
Clear selection
Which of the following clauses would NOT appear in a mortgage?
1 point
Clear selection
A mortgage that covers several parcels of land and that could contain a provision for sale of an individual property, called a release clause, is:
1 point
Clear selection
Sally Prebble borrowed $50,000. Over the term of the loan she paid $15,000 in interest and then made a final payment of $50,000. Sally's mortgage can best be described as a:
1 point
Clear selection
A junior mortgage is:
1 point
Clear selection
A second mortgage is:
1 point
Clear selection
A promissory note that provides for payment of interest only during the term of the note would be:
1 point
Clear selection
A buyer agrees to buy a home for $200,000 with a $40,000 down payment, the balance to be financed by a conventional loan. If the seller agrees to pay the discount fee of 2%, how much will he have to pay?
1 point
Clear selection
"Subject to mortgage" is:
1 point
Clear selection
A conventional mortgage is:
1 point
Clear selection
The discount charged by a lender and paid by the seller on a federal VA loan is a percent of:
1 point
Clear selection
The penalty for complete prepayment of an FHA-insured loan during the first ten years is:
1 point
Clear selection
A promissory note:
1 point
Clear selection
A mortgage is released by:
1 point
Clear selection
A clause in a mortgage or lease, stating that rights of the holders shall be secondary to a subsequent encumbrance, is:
1 point
Clear selection
When the amortized payment of a mortgage remains constant over the period of the loan but leaves an outstanding balance to be paid at the end, this payment of the balance is called:
1 point
Clear selection
When you use real property as security for a loan you:
1 point
Clear selection
All but one of the following is a purpose of FHA:
1 point
Clear selection
Upon the completion of a sale of mortgaged property, the seller must:
1 point
Clear selection
Conventional loans are:
1 point
Clear selection
The Veterans Administration is authorized to make direct loans where:
1 point
Clear selection
When a loan is approved by FHA:
1 point
Clear selection
Which of the following federal agencies does NOT participate in the secondary mortgage market?
1 point
Clear selection
The agency of the Department of HUD that buys and sells low-income mortgages is:
1 point
Clear selection
Which of the following conveys legal title and possession?
1 point
Clear selection
A financing arrangement by which the buyer does not become the owner of record would be a:
1 point
Clear selection
The Seller under a land contract is called the:
1 point
Clear selection
The Federal National Mortgage Association (Fannie Mae):
1 point
Clear selection
Under a sale-leaseback, the occupant of the property would be which of the following?
1 point
Clear selection
A private corporation which purchases mortgages in the secondary mortgage market is called:
1 point
Clear selection
A land contract does not give the buyer:
1 point
Clear selection
"Redlining" is:
1 point
Clear selection
Which of the following would constitute mortgage fraud?
1 point
Clear selection
One mortgage covering two or more specific parcels of realty
1 point
Clear selection
The party who lends money and accepts a mortgage to secure the payment of the debt
1 point
Clear selection
The employer of an agent or broker; a sum of money owed as a debt upon which interest is calculated
1 point
Clear selection
To pledge property as security; to mortgage
1 point
Clear selection
Taking of title to property by assuming liability for payment of an existing note secured by a mortgage
1 point
Clear selection
A second mortgage is subordinate to a first mortgage and in the event of foreclosure, the second mortgage would not be paid until the first mortgage has been paid in full
1 point
Clear selection
The transfer of the mortgage obligation by the lender to an assigned third party
1 point
Clear selection
A mortgage loan that allows the interest rate to be changed at specific intervals over the term of the loan
1 point
Clear selection
Mortgage which is a sometimes-used vehicle to provide secondary or additional financing ("wraps around" the existing obligation)
1 point
Clear selection
A written promise to pay a certain certain sum of money at a definite date in the future
1 point
Clear selection
A mortgage which is not FHA-insured nor VA-guarenteed
1 point
Clear selection
An instrument in writing which, when recorded, creates a lien upon property pledged as security for the repayment of a debt or obligation
1 point
Clear selection
A short-term loan used by a buyer to purchase real property; usually refinanced by a long term loan; aka "gap" financing
1 point
Clear selection
The gradual paying off of a debt on an installment basis
1 point
Clear selection
A corporation or firm that makes, delivers, and services mortgage loans
1 point
Clear selection
A mortgage containing a clause which permits the mortgagor to borrow additional money up to the original amount of the loan after the loan has been reduced, without rewriting the mortgage
1 point
Clear selection
A clause in a conventional mortgage calling for payment of the entire principal balance in full in the event a transfer of title to the mortgaged property takes place; aka the due-on-sale-clause
1 point
Clear selection
A three-party agreement in which one party is released
1 point
Clear selection
A federal agency which buys mortgages in the secondary money market from commercial banks and federally insured savings & loan associations
1 point
Clear selection
Written agreement in which buyer agrees to buy certain realty and seller agrees to sell upon terms and conditions set forth therein; title remains with the seller until terms and conditions are fulfilled; buyer has equitable title
1 point
Clear selection
A clause in a mortgage or lease stating that the rights of the holder shall be secondary or subordinate to a subsequent encumbrance
1 point
Clear selection
A mortgage loan insured by the FHA
1 point
Clear selection
An instrument used when a lien is paid off and satisfied on the records; aka "Satisfaction of Mortgage"
1 point
Clear selection
The party who borrows money and gives a mortgage on the property as security for his obligation to repay the debt
1 point
Clear selection
A clause in a conventional mortgage calling for payment of the entire principal balance in full in the event a transfer of title to the mortgaged property takes place; aka the alienation clause
1 point
Clear selection
A mortgage, commonly used in subdivision developments, whereby chattels such as appliances are "packaged" into the mortgage along with the real property
1 point
Clear selection
The instrument given by the mortgagee to the mortgagor indication discharge of the mortgage, stating that the obligation has been fulfilled and the debt is paid off.
1 point
Clear selection
The source of loan funds available directly to borrowers, whether for first or second mortgages
1 point
Clear selection
Loaning money to consumers in the hope and expectation they will default and the lender will be able to take the collateral
1 point
Clear selection
The ratio between a mortgage loan and the market or appraised value, whichever is lower
1 point
Clear selection
A judgement for the balance of a debt, issued when the difference between the indebtedness sued upon and the sale obtained at the foreclosure sale is less than the debt
1 point
Clear selection
A mortgage on property given by a buyer, either to the seller or to a third party in order to secure a portion of the purchase price
1 point
Clear selection
A clause in a mortgage/installment contract stating that upon default of payment due, immediate and full payment of the balance of the obligation becomes due and payable
1 point
Clear selection
The satisfaction of a debt or installment payment before its official due date
1 point
Clear selection
A mortgage calling for lower payments in early years than in later years. Payments increase in steps each year until the installments become sufficient to amortize the loan
1 point
Clear selection
The mortgage insurance premium paid by the borrower to the FHA on insured loans; the MIP can be paid in cash at closing or added to the loan amount.
1 point
Clear selection
A part public, part private corporation that buys and sells mortgages in the secondary money market; aka "Fannie Mae"
1 point
Clear selection
A clause in a blanket mortgage which gives the property owner the right to pay off a portion of the indebtedness, thereby freeing a portion of his property from the mortgage
1 point
Clear selection
Default insurance on conventional loans, provided by private mortgage insurance companies; usually the top 20 percent of the loan is insured in return for the insurance premium paid by the borrower
1 point
Clear selection
A type of mortgage developed for elderly homeowners with substantial equity wherein the mortgagee makes monthly payments to the mortgagor; the homeowner is not forced to sell the home to meet monthly fixed living expenses
1 point
Clear selection
The clause in a mortgage that gives a mortgagor the right to redeem his property upon the payment of his obligation to the mortgagee, and declares the instrument null and void upon payment of debt when due
1 point
Clear selection
A mortgage that is subordinate to prior existing mortgage on the same realty
1 point
Clear selection
The major source of mortgage money for residential loans; savings and loan, federal and state banks and life insurance companies
1 point
Clear selection
A mortgage in which the scheduled payments will not amortize the loan over the mortgage term, thus requiring a final payment (balloon payment) that is larger than the scheduled payments
1 point
Clear selection
A temporary loan used to borrow money to construct improvements on real property
1 point
Clear selection
A fee paid to induce a lender to make a mortgage loan; each point charged represents 1% of the loan amount and decreases the interest rate by 1/8 of 1%
1 point
Clear selection
The marketplace for the sale and purchase of existing mortgages
1 point
Clear selection
Charging a rate of interest on a loan greater than that permitted by law
1 point
Clear selection
A person or firm which acts as an intermediary between borrower and lender
1 point
Clear selection
A federal agency which provides special assistance for federally aided housing programs; active in the secondary money market for government subsidized housing programs; aka "Ginnie Mae"
1 point
Clear selection
The appraisal commitment of the VA used to fix the value of a property being proposed for purchase by a veteran under the GI Bill of Rights
1 point
Clear selection
A loan guaranteed by the VA under the Serviceman's Readjustment Act of 1944 and later
1 point
Clear selection
A rate of interest determined by the IRS to be appropriate when the interest rate set in a transaction is considered to have been set artificially low or when no interest rate has been stated
1 point
Clear selection
The unlawful practice of refusing to approve mortgage loans in certain neighborhoods on the basis of race or ethnic composition
1 point
Clear selection
A copy of your responses will be emailed to the address you provided.
Submit
Clear form
reCAPTCHA
PrivacyTerms
This content is neither created nor endorsed by Google. Report Abuse - Terms of Service - Privacy Policy
Google Forms