d) The loan must be repaid before the borrower's death. a) Description and Order b) Terms c) Dissolution d) Offer and Acceptance. c) The maximum purchase price of the property cannot exceed $250,000. d) states that a lawyer can rescind the contract terms within 10 days of contract approval. c) They are always a debit to one party and a credit to the other party for the same amount. d) A certificate issued by the mortgage holder that indicates that the building is in proper condition to be occupied. a) for a buyer who plans to own the property for a short time and believes the property will appreciate during that time. The term fixed-rate mortgage refers to a home loan that has a fixed interest rate for the entire term of the loan. 1) What is another term used to describe a promissory note? b) The buyer brings a blank check and finds out the final amount at the closing meeting. a) To make a down payment on a motor home, a) Preservation and Maintenance of Property. He would like you to make annual payments for 4 years, with the first payment to be . They require a fixed rate of interest in the first few years of the loan, followed by variable-rate interest after that. Solve for PMT = $4,794.20. 2) Which of the following terms is not used to describe a binder? 6) Which legal remedy resets parties to pre-contract status? a) Fire b) Flood c) Theft d) Explosion. d) the borrower must have a co-signer. d) They are always divided equally between the buyer and the seller. Which statement is TRUE? b) periodic estates. Quantian on Twitter: "@000Cana Assuming amortization, the average OBOR What type of loan might help Fred? 1) What is an important legal feature of a contract? When you take out a loan with a fixed. You can easily calculate an amortization schedule with a fixed-rate interest when a loan is issued. In contrast to fixed-rate mortgages are adjustable-rate mortgages, whose interest rates change over the course of the loan. The small initial payments were appealing to homebuyers looking for affordable mortgages. 60%. An amortized loan: A. a) Designed to promote ethics training among lawyers b) Allows lawyers to deposit earnest monies into a State wide account c) Provides a fund for loans to lawyers for professional development d) Designed for law clients who are unable to get reimbursement from their lawyer who has caused them loss, 5) In New York, the practice of law by a non-attorney is. c) It nullifies oral leases and listing agreements. It's tied to a benchmark rate or an index. a) Swing Loan b) Wraparound Loan c) Pillow Loan d) Ancillary Loan. d) pay the purchase price for the property. 5) Which aspect of a contract deals with when a tenant takes possession of the property? - e.g. If youre into crunching numbers, theres a standard formula to calculate your monthly mortgage payment by hand. d) allowance contract. 1) Which of the following documents is not one that will be needed at closing? d) It eliminates fraud in real estate contracts. The buyer's primary function at closing is to. 7) A buyer submits an offer to a seller. Unending equal payments paid at either equal or unequal time intervals., A loan where the borrower receives money today and repays a single lump sum on a future date is called a(n) _____ loan. 4) Which of these items is not included in a lease agreement? e. b) Private mortgage insurance is available for FHA loans. a) prepaid expenses. This compensation may impact how and where listings appear. 9) PMI loans made after July 1999 are now regulated by Federal law. c) 1 percent of the loan amount. ARMs are generally favored by people who dont mind the unpredictability of rising and falling interest rates. 7) What kind of lease contains a recapture clause? 3) What do we call the right to reclaim a property that has been foreclosed by paying off amounts owed to creditors, including interest and costs? 5) What is a lead-based paint disclosure used for? periodic payments will pay off the loan. c) Brokers may not complete leases to which they are not a party. Thats because the interest rate in a fixed-rate mortgage doesnt change for every installment payment. Input data as follows: N = 4; I/YR = 5; PV = -17,000; and FV = 0. a) Mager Clause b) Merger Clause c) Rescind Clause d) Vacant Clause. d) after 7 years of loan payments. c) implied contract. Freddie Mac. a) Receipt b) Buyer's Statement c) Purchase Offer d) An Agreement. The formula for the calculation of the PR factors is. 3) Which of these is a common property description? a) Estate at will b) Estate for time c) Estate for years d) Estate at sovereignty. Thomas J. Brock is a CFA and CPA with more than 20 years of experience in various areas including investing, insurance portfolio management, finance and accounting, personal investment and financial planning advice, and development of educational materials about life insurance and annuities. a) They can cancel the contract and get their earnest money refunded. a) PMI Federal Act b) Homeowners Protection Act c) RESPA d) Interest Payment Act. Meaning, Barry paid $330,000 in interest over the life of the loan. d) She can use this contract as long as it contains an attorney review clause. What type of contract does Bill hold? b) It requires certain conveyance-related contracts to be in writing. The amount of principal repayment is $10,190 (annual payment) - $4,500 (interest amount) = $5,690. a) The borrower must occupy the property. The amount borrowed, $1, is positive because from the borrowers perspective it would be a cash inflow. c) have more forms than government-backed loans. a) The contract must be rewritten and signed again. c) a promise note. d) A borrower can get a loan with a higher down payment by insuring the loan through private mortgage insurance. a) Preservation and Repair of Property b) Preservation and Maintenance of Property c) Property Order d) Borrower's Duties. Study with Quizlet and memorize flashcards containing terms like Fannie Mae and Freddie Mac perform which of the following functions?, Which of the following summarizes how equity can be calculated?, With an amortized loan, early payments primarily pay for which of the following? term or straight term loan. Which of the following is TRUE? Requires the principal amount to be repaid in even increments over the life of the loan. b) pay the real estate taxes. In an amortized loan, the portion of the payment that is interest provides the lender a return on the investment, and the portion of the a) Estate For Years b) Estate At Will c) Estate At Sufferance d) Estate At Order. a) Apportionments b) Debits & Credits c) Terms of Payment d) Exclusions. Units 11-15 Flashcards A fixed interest rate remains the same for a loan's entire term, making long-term budgeting easier. a) The meeting of the minds b) The actual contract form c) The written contract words d) The public notice of the offer, 2) Neighbor Sam told seller Jake that he would buy 2 adjoining acres if Jake ever decides to sell. b) It requires certain conveyance-related contracts to be in writing. The principal is repaid in equal increments and included in each loan payment. C. Balloon. 7) Which of the following is not an item that a buyer usually pays at closing? b) A tenant buys the landlord's ground, then leases the improvements. This is known as what type of account? Types of loans. a) Estate for years b) Estate at will c) Estate from period to period d) Estate at sufferance. B. d) void. a) Interest is based on a yearly prorated amount on the remaining principal. a) Holdout tenant b) Holdover tenant c) Tenant at-large d) Tenant in-arrears. 3) Which of the following persons may, but is not required to, attend a closing? c) A notary must sign and stamp the changes. The bill is $39.00 per quarter. 8) Which of these would be a CREDIT to the buyer at closing? c) include all outstanding liens against the property. b) neither an instrument of conveyance nor contract. 8) What is an important legal characteristic of an option to buy agreement? A. Amortized. Finance Exam 2.docx - Module 4: Discounted Cash Flow 5) In which provision would a landlord describe what activities can take place on the property? 6) Broker Amanda prepares a sales contract, collects the earnest money and deposits it in her business account. Amortizing Loan Calculator - Lutheran Church Extension Fund d) The broker must complete a rider. c) A certificate issued by the property owner that indicates that the building is in proper condition to be occupied. d) provide a fixed interest rate for the life of the loan. Learn Test Match Created by nolancallecod Finance Terms in this set (20) An ordinary annuity is best defined by which of the following? a) Good Faith Estimate b) Truth-in-Lending Statement c) HUD-1 Form d) Mortgage Loan Disclosure Statement. a) Open b) Balloon c) Fully Amortized d) Retraced. a) $680 b) $1,360 c) $2,040 d) $2,720. 2) Fred reclaimed a foreclosed property by paying off owed amounts, including interest and costs? A lending bank, on the other hand, is not earning as much as it could from the prevailing higher interest ratesforegoing profits from issuing fixed-rate mortgages that could be earning higher interest over time in a variable-rate scenario. b) will be a credit to the buyer. a) a felony. The contract was not approved by the local Real Estate Board nor the Bar Association. PRINCIPAL AND INTEREST. May have equal or increasing amounts applied to the principal from each loan payment. b) every three years. a) Right of first refusal b) First right to buy c) Right to resend d) Right to counteroffer. b) a class 3 felony. annual rate of 4% on the account balance. b) The bundle of rights linked to the recorded title to a parcel. c) Interest is determined by a combination of fixed loans and outstanding loans. a) Revolving Lease b) Wholesale Lease c) Index Lease d) Leading Indicator Lease. whereas the PR factor provides the equal periodic payments the present value of which is $1. long-term amortization of loans. For example, a loan for $125,000 at 5% can be computed on a 30-year amortization schedule but be paid over a term of 20 years. b) In a sublease, the original tenant retains primary responsibility for performance of the original lease contract. 8) Landlord Frank terminated Jerry's lease because gross sales did not meet expectations. 10) Which of the following is an item that is not normally prorated? c) the Mortgage Loan Trust Bank. b) intended contract. Balloon payment Required payment larger than the regular loan payment, typically at the end of the loan but could be made earlier. The annual payment of $29,433 is the $400,000 balance in the retirement account multiplied by the annual. a) through verbal agreements. c) the mortgage itself provides the only security for the loan. d) the Standards and Poor's Trust. The actual amount of interest that borrowers pay with fixed-rate mortgages varies based on how long the loan is amortized (that is, how long the payments are spread out for). This differs from a variable-rate mortgage, where a borrower has to contend with varying loan payment amounts that fluctuate with interest rate movements. 6) A homeowner's insurance policy typically covers all but which of these? Borrowers are paying more on their mortgage than what current market conditions are stipulating. Number of years= (30 x 12) = 360 payments in all. b) contain default penalties. a) for a buyer who plans to own the property for a short time and believes the property will appreciate during that time. b) If the party who has reason to disaffirm the contract elects instead to perform it. Which statement is TRUE? Investopedia does not include all offers available in the marketplace. 7) Which kind of lease increases at specified intervals? Example 4: fully amortized loan. a) A certificate issued by a local building department that indicates that the building is in proper condition to be occupied. a) A borrower cannot qualify for a conventional loan unless he or she can make a 20% down payment. An amortization schedule shows the distribution of loan payments between principal and interest throughout the entire term of a loan. Your bank agree to provide you with $250,000 Mortgage at a fixed interest rate of 5% for 30 years. 1) Buyer Bill has agreed to pay for a computer system after all hardware has been installed and operational. a) $12.87 b) $15.91 c) $23.22 d) $25.74. 1) Grant moves into his new office space while he awaits the completion of the negotiations of the lease terms. Over the term of a fully amortized loan, the principal amount is entirely repaid. 10) Which loan covers the period of time between the end of one mortgage and the beginning of another? True The present value of an investment increases as the opportunity cost rate increases. a) Interest Only b) Balloon c) Amortized d) Adjustable rate. d) contain a legal description of the property. b) title insurance. b) Norm can complete the lease agreements as long as he has a lawyer co-sign them. c) debits to the buyer. 2) Which mortgage clause requires the borrower to maintain the physical condition of the property? d) The landlord cancels the lease. Time Value of Money - Board of Equalization - California State Board of c) Sara can use a binder but not a sales contract. 1) Which type of lease has no automatic renewal? From the standpoint of the lender, a loan is an investment. d) The escrow agent will subtract the total of the buyer_s credits from the total debits and the result is what the buyer needs to bring. 14) In an effort to make it possible for veterans returning from World War II to purchase a home, the Veterans Administration offered the opportunity for veterans to purchase a home with. d) If the party who wants to enforce the contract seeks damages. The 30-year fixed-rate mortgage is the product of choice for nearly 90% of todays homeowners. 8) PMI loans made after July 1999 require that the loan must be released. 13) Which organization insures loans made by approved lending institutions? c) Arbitrate prior to taking court action. a) Fee for clearing the title b) Broker commission c) Homeowner's insurance d) Transfer taxes. The $20,000 is what type of mortgage? A patron at a restaurant is agreeing to a(n). Mortgagors pay more toward interest in the initial stages of repayment; later on, their payments are going more into the loan principal. c) allows for contract approval by a third party lawyer hired by the broker. 9) When a tenant agrees to pay all taxes, insurance, maintenance and repairs, that tenant has what kind of lease? Borrowers who want predictability and/or who tend to hold property for the long term tend to prefer fixed-rate mortgages. What is this law called? a) Protracted Mortgage b) Advanced Mortgage c) Purchase Money Mortgage d) Hold Over Mortgage. d) Tim and Laura have not acted in good faith; so they cannot get their earnest money back. loan amortization schedule. They do not try to get a loan, and when the deadline for loan approval draws near, they tell their agent they couldn't get a loan. 1. pure discount loans. b) They are always a debit to the seller and a credit to the buyer. a) covers more than one piece of property. An amortization schedule shows the distribution of loan payments between principal and interest throughout d) Mark can be evicted. d) The original offer is legally terminated. During this interim period, Grant makes monthly rent payments and the owner accepts them. 9) Which of the following is a characteristic of land leases? c) is subordinate to a first mortgage. a) Window Loan b) Home Equity Loan c) Reverse Annuity Mortgage d) Blanket Loan. Amortization schedules are useful because interest and principal repayment may be treated differently for income tax purposes and it is necessary to keep track of the separate amounts for each. Mortgage APR Calculator - Lutheran Church Extension Fund b) credits to the seller. Loan Amortization Flashcards | Quizlet 6) Broker Sara completes a preprinted sales contract. 2) Mark gets a home loan and the lender will charge him 3 points at closing. c) The contract can be executed at no cost to the optionee. presented in Assessors Handbook Section 505 (AH 505), Capitalization Formulas and Tables. Loan APR is 4.703% Loan information: [-] Mortgage amount: $0k $200k $500k $1m Term in years: 1 10 19 40 Interest rate: 0% 8% 16% 25% Monthly payment: $1,013.37 The primary use of the PR factor is to provide the amount of the periodic payment necessary to retire a given loan amount. No principal is paid off amortization plan a borrower makes a periodic (usually monthly) payment of principal plus interest These payments result in the loan being paid off gradually over time. SmartSelect_20221110_170648_Quizlet.jpg. d) property inspection. a) It invalidates certain oral contracts. These include white papers, government data, original reporting, and interviews with industry experts. So the interest rate in a fixed-rate mortgage stays the same regardless of where interest rates goup or down. With variable-rate loans, the interest rate is set above a certain benchmark and then fluctuateschanging at certain periods. Example 1: 3. amortized loans. 8) Conventional loans are typically uninsured. a) Prior deed b) Copy of property tax bill c) Prior title insurance policy d) Seller's credit report. 7) A prospective homebuyer submits a signed offer to buy a house with the condition that the seller pays financing points at closing. Amortization Question / Example Flashcards | Quizlet Typically, buyers planned to refinance to a new mortgage before the balloon payment became due. Ch.10 Quiz -Rockwell Flashcards | Quizlet b) Only attorneys can hold and deposit earnest money. d) It can be created only by an attorney. a) Amanda has illegally commingled the earnest money with her own money. 7) Jim holds a commercial lease. d) a document that conveys legal title. What is her loan-tovalue? Which statement is TRUE? - with such a loan, the borrower receives money today and repays a single lump sum at some time in the future. d) the federal discount interest rate. Balloon Payment Loan Balloon payment loans are partially amortized loans. The monthly payment of $599.60 is the loan amount of $100,000 multiplied by the monthly, The remaining loan balance of $79,085.97 is the payment amount of $599.60 multiplied by the. Partially amortized c. Interest-only d. Both B and C, Hope is applying for an FHA loan to purchase a $360,000 condominium. Her expertise is in personal finance and investing, and real estate. AMORTIZATION Flashcards | Quizlet An initial interest rate is fixed for a period of time, usually several years. c) The apartment can be decontrolled. Yarilet Perez is an experienced multimedia journalist and fact-checker with a Master of Science in Journalism. and more. Borrowers make monthly payments of interest, with no payment of principal required until a specified date. Paul is most likely holding what kind of loan? a) require lower down payments than government-backed loans require. c) valid but unenforceable contract. An adjustable-rate mortgage (ARM) is a home loan with a variable interest rate thats tied to a specific benchmark. 5) Mike signed a rental agreement for his friend Norm. 2) Which kind of lease has no time limit? When rates rise, a borrower maintains a lower payment compared to current market conditions. 1) What type of document does a home owner sign when agreeing to a mortgage? d) carry prepayment penalties, while government-backed loans do not. . 6) In which contract section might you the property address? How much of Johns first payment is principal and how much is interest? C. Requires that all interest be repaid on a monthly basis while the principal is repaid at the end of the loan term. (Assume it is not a leap year and the day of closing belongs to the seller. b) are less flexible than government-backed loans . FINANCE (10) Flashcards | Chegg.com d) pay the purchase price for the property. 1) Proof of ownership of a property is called what? Balloon Mortgage: What It Is and How It Works | LendingTree You have just borrowed $50,000, to be repaid in equal annual installments at the end of each of the next 20 years. What action has Bill taken regarding his lease requirement? a) Fixed b) Straight c) Amortized d) Open. Definition, Qualification, and Types, Buydown: Definition, Types, Examples, and Pros & Cons, Fully Indexed Interest Rate: What it Means, How it Works, FAQs. principle isn't reduced short term. The lesson: The PR is the payment amount, at periodic interest rate i and number of periods n, The most common amortization types include fixed-rate loans, adjustable-rate mortgages (ARM), and . b) A certificate issued by a HUD that indicates that the building is in proper condition to be occupied. If he can earn an annual rate of 4% on the account a) Mark can insist that the landlord lower the rent. b) the First National Bank. c) when the loan-to-value ratio reaches 78 percent. 14) Which of the following is NOT an FHA loan requirement? How Is a Loan Amortization Schedule Calculated? | The Motley Fool CHAPTER 16 Flashcards | Quizlet