Real Estate Finance I-Champions| 60 Questions And Answers

The Upfront Mortgage Insurance Premium (UFMIP) on an FHA loan is paid: (a) At closing (b) By the seller (c) In monthly installments added to the monthly payment (d) Only upon default {Ans: A}While some expenses may be paid in the form of a seller contribution or other means, the borrower actually must have the funds on hand for the: (a) Downpayment (b) Appraisal fee (c) Points (d) Brokerage fee {Ans: A}A(n) _________ is a right given by law to creditors to have debts paid out of the property of a defaulting debtor. (a) Lien (b) Interest (c) Settlement (d) Foreclosure {Ans: A}A qualifying ratio that compares the borrower's proposed house payment to their gross monthly income is the __________. (a) Back ratio (b) Appraisal ratio (c) Front ratio (d) Loan to value ratio {Ans: C}If a home was built 30 years ago, thirty years is the home's ___________. (a) Useful life (b) Effective age (c) Chronological age (d) Depreciated age {Ans: C}If a borrower is in default, the mortgage servicer may start the _________ process. (a) Forestalling (b) Closing (c) Casting (d) Foreclosure {Ans: D}