Real Estate Finance review for NYS real estate exam
|
Conventional Mortgage
|
a loan secured by real property through the use of a mortgage note
|
|
ARM
|
a mortgage loan with the interest rate on the note periodically adjusted
|
|
FHA Mortgage
|
backed loans that usually require a lower down payment and may sometimes have a lower interest rate
|
|
Reverse Annuity Mortgage
|
lender makes periodic payments to the borrower using the borrower’s equity in the home as satisfaction of mortgage
|
|
Balloon Mortgage
|
a mortgage which does not amortize over the term of the note, thus leaving a balance due at maturity
|
|
Blanket Mortgage
|
used to fund the purchase of more than one piece of real property
|
|
Package Mortgage
|
a method of financing in which the loan that finances the purchase of a home also finances the purchase of personal items
|
|
Shared Equity Mortgage
|
Joint ownership of real estate by both lenders and property dwellers
|
|
Wrap-Around Mortgage
|
The seller extends to the buyer a junior mortgage which wraps around the existing in addition to any superior mortgages already secured by the property
|
|
point
|
a loan fee equal to 1% of the mortgage amt
|
|
Private Mortgage Insurance (PMI)
|
insurance payable to a lender or trustee for a pool of securities that may be required when taking out a mortgage loan
|
|
HELOC
|
a line of credit extended to a homeowner that uses the borrower's home as collateral
|
|
usury
|
on a loan, claiming a rate of interest greater than that permitted by law
|
|
LTV is based on the appraised value or contract price, whichever is less
|
|
Housing expense ratio (PITI) = front-end ratio (shouldn't be greater than 33%)
|
|
Need to be at least 62 yrs old for reverse annuity loan
|
|
Fixed rate mortgage offers the least amount of risk and is preferred among long term homeowners
|
|
FHA Mortgage is best suited for first time home buyers who lack the funds for a large down payment
|
|
Banks look for appraisal and title in a property
|
|
What type of mortgage is often recommended for buyers seeking to live in the house for only a short period of time?
adjustable rate mortgage
|
|
If Michael wants the lowest starting interest rate, what ARM should he get?
3/1 ARM
|
|
Which ARM has the closest starting interest rate to a 30 yr fixed mortgage?
10/1 ARM
|
|
What is the typical annual cap on ARM?
2%
|
|
What valuation method does a lender typically use when determining the value of a property?
Market approach
|
|
What parameters do appraisers typically use to determine the value of a property using sales comparison approach?
Properties w/in 1 mile radius, sold w/in the last 6 months
|
|
What are known as the limits to the interest rate on an ARM?
Rate Caps
|
No comments yet.
Cheatography n. The art of mapping complex subjects into clear, instantly navigable reference guides.
