Mortgage Documents Quiz

Robert is reviewing the mortgage documents he received from the bank. What is a typical clause Robert will most likely encounter when reviewing the mortgage...?

• Hold harmless clause

• Defeasance clause

• Flip tax clause

• Warranty clause

The lender or bank who provides a loan to the borrower or homeowner is known as the...?

• Underwriter

• Principal

• Mortgagor

• Mortgagee

A signed document containing a written promise to pay a stated sum to a specified person/institution or the bearer at a specified date is known as what...?

• Release Clause

• Mortgage

• Promissory Note

• Acceleration Clause

The unfair, deceptive, or fraudulent practices of some lenders during the loan origination process is referred to as...?

• Predatory Lending

• Regulation Z

• Discriminatory Lending

• Red Lining

Which of the following is NOT considered a conventional mortgage?

• Jumbo loan

• Term loan

• VA mortgage

• Commercial bank loan

The process by which a loan principal decreases over the life of a loan is known as what?

• Acceleration

• Graduation

• Amortization

• Buydown

The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling, is known as what?

• Graduated Payment

• Margin

• Increase

• Inflation

The amount a lender is willing to loan on a property is determined by applying the LTV to what?

• The appraised value only

• The appraised value or the contract price, whichever is less

• The appraised value or the contract price, whichever is greater

• The contract price only

What is the minimum down payment on an FHA mortgage?

• 20 (Percent %)

• 15 (Percent %)

• 3.5 (Percent %)

• 10 (Percent %)

Which of the following adjustable rate mortgages will have the highest interest rate?

• 5/1 ARM

• 7/1 ARM

• 10/1 ARM

• 3/1 ARM