Chapter 9 Quiz: Finance Practices and Closing Transactions

Insurance for the protection of lending institutions making conventional loans is called:

Insurance for the protection of lending institutions making conventional loans is called:

FHA programs are for which of the following purposes?

FHA programs are for which of the following purposes?

The FHA bases its commitment on a percentage of:

Which of the following FHA programs provides for lower monthly payments in the early years of the mortgage term by not requiring the borrower to pay all the interest at that time?

Which of the following FHA programs provides for lower monthly payments in the early years of the mortgage term by not requiring the borrower to pay all the interest at that time?

Which of the following statements about VA loans is correct?

Which of the following statements about VA loans is correct?

Which of the following statements about discount points is correct?

Which of the following statements about discount points is correct?

All of the following statements about Regulation Z are correct EXCEPT:

All of the following statements about Regulation Z are correct EXCEPT:

RESPA requires the lender to furnish the borrower all of the following EXCEPT:

RESPA requires the lender to furnish the borrower all of the following EXCEPT:

ECOA requires lenders to make consumer loans on an equal basis to all of the following EXCEPT:

ECOA requires lenders to make consumer loans on an equal basis to all of the following EXCEPT:

The type of mortgage requiring the borrower to pay only interest during the mortgage term is a(n):

The type of mortgage requiring the borrower to pay only interest during the mortgage term is a(n):

The amount of interest paid on a 20-year amortized mortgage, for one month in which the principal balance is $73,000 and the rate is 4 percent is:

A mortgage that is NOT on a fully amortizing basis and, therefore, requires a larger final payment is called a(n):

A mortgage that is NOT on a fully amortizing basis and, therefore, requires a larger final payment is called a(n):

A mortgage in which two or more parcels of land are pledged is called a(n):

A mortgage that is subordinate to another is called a:

A mortgage that is subordinate to another is called a:

A mortgage given by the buyer to the seller to secure payment of part of the purchase price is a(n):

A mortgage given by the buyer to the seller to secure payment of part of the purchase price is a(n):

The type of mortgage in which the payments are lower in the early years and increase at specified intervals is a(n):

The type of mortgage in which the payments are lower in the early years and increase at specified intervals is a(n):

The sale price of the property is $180,000. The buyer is putting 20 percent down. The lender is charging the buyer two points. The dollar amount the buyer will pay in points is:

In Michigan, the maximum interest rate between private parties is:

In Michigan, the maximum interest rate between private parties is:

Perc tests are used primarily to determine:

Perc tests are used primarily to determine:

Upon which event would a prepayment penalty be enforced?