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Chapter 09. Real Estate Finance Flashcards
The "nominal interest rate" is:stated in the note
Which of the following is FALSE concerning the Annual Percentage Rate (APR)?It is expressed as a weekly rate.What do we call a borrower who secures a loan through a trust deed?Trustor The trustee issues a "reconveyance deed" when the
promissory note is:
paid in full.What type of loan allows the interest rate to "fluctuate" depending on money market conditions?Adjustable rate mortgage Should the trustor default, the trustee may have to sell the
property for the:
beneficiary.The basic instrument used to evidence an obligation or
debt is a:
promissory note.Moneys collected in advance from borrowers to assure the
payment of recurring costs are known as:
impound accounts.
The 1% loan fee on FHA loans is usually paid by the:seller.
A clause in a financial instrument that allows a lender to demand immediate payment of the entire note balance is
known as a(n):
acceleration clause.A person who takes a negotiable instrument from another
with no knowledge of defect is called a(n):
holder in due course.Which of the following liens are NOT eliminated by a foreclosure sale?federal tax liensstate, county, or city assessmentsstate, county, or city taxes What type of clause does the entire balance of the loan become due and payable when an owner is alienating, transferring, or conveying a property?Alienation clause
The trustor is also known as the:borrower.
What document does a trustee record after being notified by the lender of the trustor's nonpayment?Notice of Default What provision in an instrument of finance would permit a change in the priority of liens on a property?Subordination clause The practice of purchasing real estate using a small amount of your own money and a large portion of borrowed
funds is knowns as:
leverage.A lender charges an origination fee, which includes points.
One "point" is equal to:
1% of the loan amount Which of the following is NOT a party to a trust deed?Grantor
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