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Related Flashcards
Related Topics
Cards In This Set
| Front | Back |
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The most typical adjustment interval on an ARM once the interest begins to change is?
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One Year
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A characteristic of a partially amoritized loan is....
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A balloon payment is required at the end of the loan term.
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If a mortgage is to mature at a certain future time without any reduction in principal, this is called
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Interest only mortgage
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The dominant loan type originated by most financial institutions is
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Fixed payment, fully amoritized
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What is true about 15 and 30 year fixed payment mortgages...
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Assuming both are affordable borrowers should choose a 30 year over an identical 15 year IF their discount rate exceeds the mortgage rate.
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ARMS commonly have all the following.... but not
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Teaser rate, margin, index, periodic interest rate cap
NOT Inflation index |
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APR was created by
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Truth in lending act 1968
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PMI or private mortgage insurance is required on _________ loans with ltv ratios greater than_______
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Home
80 |
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Loan with the most default risk assuming all terms are identical
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Interest only loans
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Jumbo loan
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Too large to be purchased by fannie and freddie
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Max ltv for fha and for VA loans
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98 and 100 respectively
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Conforming conventional loans are
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Eligable for purchase by fannie and freddie
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Home equity loans typicall have
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Tax deductable interest charges
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Best method for determining whether or not to refinance
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Net benefit analysis
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Greatest contribution to home mortgage lending was
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Establish the use of level payment home mortgage
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