BUSI 422 Read & Interact Brueggeman & Fisher Chapter 8 solutions complete answers

BUSI 422 Read & Interact Brueggeman & Fisher Chapter 8 solutions complete answers

 

The loan amount divided by the estimated property value is the:

 

What is the APR of an ARM with a beginning loan balance of $150,000 for 30 years with monthly payments. The interest rate is 7% over the first year and it rises to 9% after year 1.

 

Federal Truth-in-Lending laws applies too which types of property?

 

What is the APR of an ARM with a beginning loan balance of $120,000 for 30 years with monthly payments. The interest rate is 4% over the first year and it rises to 6% after year 1.

 

A mortgage of $100,000 with 2 points will have a net amount advanced of:

 

FTL laws ______ attempt to regulate the cost of a mortgage.

 

True or false: Recording fees are a statutory cost.

 

If a county collects property taxes on January 1 each year and a house is sold on September 30, who is responsible for property taxes from September 30-December 31?

 

Expenses for loan closings will be paid by ___________.

 

If a county collects property taxes on January 1 each year and a house is sold on September 30, who is responsible for property taxes from January 1 - September 30?

 

If gross income is $40,000, taxes paid are $10,000, and other expenses are $8,000, what is the residual income?

 

FHA insured loans are ______.

 

When does the final settlement between the buyer and seller occur?

 

Conventional loans _______.

 

Monthly housing expenses should include:

 

Which of the following makes up about 35% of a credit-score?

 

Borrower assets must be sufficient to pay closing costs and the _______.

 

Borrower income must be _________

 

An ARM can reduce which type of risk?

 

Mortgage insurance protects against ______ risk.

 

A part of the process of        determines whether the loan-to-value ratio is acceptable to the lender.

 

The monthly payment on a loan plus other housing expenses divided by a borrower’s income is the:

 

The purpose of the closing is:

 

Match the following items included in a closing statement with the section they fall under:

 

Rank the following contents of credit-scoring models from most important to least important:

 

RESPA will impact which of the following property types?

 

Loan maximums exist on       -insured mortgages.

 

Match the following possible charges made by the lender with its explanation:

 

Which agencies have the biggest impact on the conventional loan market?

 

True or false: The goal of the underwriter is to determine whether the terms of a mortgage are acceptable to the lender.

 

Default        is used when the risk of borrower default exceeds what a lender is willing to bear.

 

The amount divided by the estimated property value is the:

 

Assessing the risk of a particular loan is a key problem facing:

 

Which of the following are included in a closing statement under RESPA?

 

You know a loan has a loan-to-value ratio of 95%. Which type of loan is it most likely to be?

 

Which of the following loans will not have an insurance fee?

 

        requires a lender to notify the borrower a good faith estimate of certain closing costs.

 

Property taxes should be included in        expense estimates.

 

Borrower        must be sufficient to close the transaction.

 

A loan officer uses an appraisal of the property for what?

 

Which loan is likely to have a higher loan-to-value ratio?

 

Default insurance is paid for by which party?

 

A conventional mortgage is likely to have which amount of equity (as a percent of value)?

 

A main goal of RESPA is to do what:

 

Which parties negotiate a conventional mortgage loan?

 

Underwriters determine borrower income by doing which of the following?

 

The process of evaluating a loan request in terms of potential profitability and risk is        .

 

Which of the following loan types have more restrictions?

 

A mortgage of $75,000 with 2 points will have a net amount advanced of:

 

What is the APR of an ARM with a beginning loan balance of $120,000 for 30 years with monthly payments? The interest rate is 4% over the first year and it rises to 6% after year 1.

 

Transfer taxes may be imposed by which of the following governments?

 

What does RESPA ban?

 

Which type of loan insures the lender completely against default loss?

 

True or false: A lender may be willing to grant a loan above 80% of value if the borrower purchases mortgage insurance.

 

FTL laws        attempt to regulate the cost of a mortgage.

 

As long as income is verifiable, will an underwriter include it in borrower income?

 

The FHA program provides which of the following?

 

If the total obligation is $950 and borrower income is $4,500, the total obligation ratio is?

 

If a county collects property taxes on January 1 each year and a house is sold on September 30, who is responsible for property taxes from January 1 – September 30?

 

Mortgage insurers collect premiums for assuming:

 

If gross income is $34,000, taxes paid are $9,000, and other expenses are $7,000, what is the residual income?

 

Expenses associated with loan closings:

 

Which loan type has a maximum amount to make the loan insurable?

 

Which of the following provides a loan guarantee?