30 HOUR PA FUNDAMENTALS TEST BANK
ACCURATE EXAM QUESTIONS WITH DETAILED
VERIFIED ANSWERS (100% CORRECT
ANSWERS)/ALREADY GRADED A+
What is the loan balance called? - (answers)the principal
Charging interest in excess of this rate is called __________ or illegal interest. -
(answers)usury
What is the total dollar amount of interest and points paid by a borrower at closing.
- (answers)prepaid interest
What are a one-time fee paid at closing to increase the yield to the investor. -
(answers)points
Points give the lender more money up-front so he will be encouraged to make a
loan at a __________ interest rate. - (answers)lower
The lender is able to make lower interest rate loans, but the buyer must come up
with the point money in ___________ at the time of closing. - (answers)cash
What is the principal of using other people's money to make investments? -
(answers)leverage
,The ratio of loan amount compared to the value of the property is called the
__________. - (answers)Loan to Value Ratio
The value in a property held by the owner in excess of any liens against it is called
__________. - (answers)equity
What is the cost per thousand that is required to create the principal and interest
payment necessary to pay off the loan? - (answers)a factor
The longer the loan, the lower the __________. - (answers)interest rate
What is the order of payment in foreclosure? (4 things) - (answers)Cost of Sale -
advertising, attorney fees, etc.
Special assessment and general taxes are paid after the costs of the sale.
The first mortgage, which is determined by the order of recording.
Whatever is recorded next
What kind of foreclosure is required to foreclose a Mortgage? - (answers)judicial
,What kind of foreclosure is required to foreclose on a Deed of Trust? -
(answers)non-judicial
Who, in a Deed of Trust, holds "Naked Legal Title" (one without possessory
rights), and can claim the property without going through the courts? -
(answers)the trustee
What gives the borrower the right to clear up the debt prior to the foreclosure sale?
- (answers)The Equitable Right of Redemption
What gives the borrower a certain amount of time after the sale to clear the debt? -
(answers)The Statutory Right of Redemption
If the proceeds from the foreclosure sale are not sufficient to cover the debt, the
lender can go to court and seek what 2 things? - (answers)Deficiency judgment - a
general lien and would apply to all of the borrower's assets.
Deed in lieu of foreclosure - Lender and borrower agree that the lender will
become the owner of the property instead of going through the formal foreclosure
process.
What is the promise to repay the debt and a negotiable instrument? - (answers)a
promissory note (pledge)
, What is a long-term note that is not secured by a specific property? - (answers)a
debenture
The buyer of the property retains the right to use the property exclusively while it
is subject to a __________ or __________. - (answers)Mortgage or Deed of Trust
Both create the collateral for a loan by promising the property in case of default by
the borrower.
In a mortgage, the borrower is the __________, and the lender is the __________.
- (answers)mortgagor
mortgagee
In a Deed of Trust, the trustor is the __________. The beneficiary is the
__________. And the trustee is __________. - (answers)borrower
lender
anyone designated by the lender
Under a Deed of Trust, who holds the promise to repay (Promissory Note) from the
borrower? - (answers)the beneficiary (lender)
Who holds the security (Deed of Trust) for the debt. - (answers)the trustee
ACCURATE EXAM QUESTIONS WITH DETAILED
VERIFIED ANSWERS (100% CORRECT
ANSWERS)/ALREADY GRADED A+
What is the loan balance called? - (answers)the principal
Charging interest in excess of this rate is called __________ or illegal interest. -
(answers)usury
What is the total dollar amount of interest and points paid by a borrower at closing.
- (answers)prepaid interest
What are a one-time fee paid at closing to increase the yield to the investor. -
(answers)points
Points give the lender more money up-front so he will be encouraged to make a
loan at a __________ interest rate. - (answers)lower
The lender is able to make lower interest rate loans, but the buyer must come up
with the point money in ___________ at the time of closing. - (answers)cash
What is the principal of using other people's money to make investments? -
(answers)leverage
,The ratio of loan amount compared to the value of the property is called the
__________. - (answers)Loan to Value Ratio
The value in a property held by the owner in excess of any liens against it is called
__________. - (answers)equity
What is the cost per thousand that is required to create the principal and interest
payment necessary to pay off the loan? - (answers)a factor
The longer the loan, the lower the __________. - (answers)interest rate
What is the order of payment in foreclosure? (4 things) - (answers)Cost of Sale -
advertising, attorney fees, etc.
Special assessment and general taxes are paid after the costs of the sale.
The first mortgage, which is determined by the order of recording.
Whatever is recorded next
What kind of foreclosure is required to foreclose a Mortgage? - (answers)judicial
,What kind of foreclosure is required to foreclose on a Deed of Trust? -
(answers)non-judicial
Who, in a Deed of Trust, holds "Naked Legal Title" (one without possessory
rights), and can claim the property without going through the courts? -
(answers)the trustee
What gives the borrower the right to clear up the debt prior to the foreclosure sale?
- (answers)The Equitable Right of Redemption
What gives the borrower a certain amount of time after the sale to clear the debt? -
(answers)The Statutory Right of Redemption
If the proceeds from the foreclosure sale are not sufficient to cover the debt, the
lender can go to court and seek what 2 things? - (answers)Deficiency judgment - a
general lien and would apply to all of the borrower's assets.
Deed in lieu of foreclosure - Lender and borrower agree that the lender will
become the owner of the property instead of going through the formal foreclosure
process.
What is the promise to repay the debt and a negotiable instrument? - (answers)a
promissory note (pledge)
, What is a long-term note that is not secured by a specific property? - (answers)a
debenture
The buyer of the property retains the right to use the property exclusively while it
is subject to a __________ or __________. - (answers)Mortgage or Deed of Trust
Both create the collateral for a loan by promising the property in case of default by
the borrower.
In a mortgage, the borrower is the __________, and the lender is the __________.
- (answers)mortgagor
mortgagee
In a Deed of Trust, the trustor is the __________. The beneficiary is the
__________. And the trustee is __________. - (answers)borrower
lender
anyone designated by the lender
Under a Deed of Trust, who holds the promise to repay (Promissory Note) from the
borrower? - (answers)the beneficiary (lender)
Who holds the security (Deed of Trust) for the debt. - (answers)the trustee
