Loan Sign Test #6 Questions 2024 Solved 100%
contingency - ANSWERa clause in an agreement that keeps things from being legally
binding unless a condition is met.
A typical contingency clause might read like this: "This contract is contingent upon
Buyer successfully obtaining a mortgage loan at an interest rate of 6 percent or less."
recording fee - ANSWERThe fee charged by a government agency for registering or
recording a real estate purchase or sale, so that it becomes a matter of public record.
Recording fees are generally charged by the county (such as in the United States),
since it maintains records of all property purchases and sales.
recording - ANSWERRecording is the act of putting a real estate document into the
official records at the County Recorders or Recorder of Deeds Office. Usually, the
types of documents that are recorded affect title to real property such as a deed,
mortgage, easement, judgment, lien, foreclosure, or request for notice of default.
escrow company - ANSWEREscrow means that you're using a "third party"
(somebody who is neither the buyer or seller) to hold something of value, which
helps to make your transaction safer.
Ideally, this would be a disinterested (or neutral) third party - who doesn't care
whether the buyer or seller comes out ahead. The job of an escrow service is simply
to ensure that everybody sticks to their end of the bargain.
comps (comparables) - ANSWERComps, or comparables, are regarded as the single-
best tool in determining a home's value. They contrast criteria from recently sold
properties in a neighborhood, such as sale price, age of house, size, and square
footage. Real estate agents use comps to prepare a Comparative Market Analysis
(CMA) for their clients
credit bureau - ANSWERA credit bureau is an company that collects and maintains
individual credit information and sells it to lenders, creditors, and consumers in the
form of a credit report. Credit grantors provide the bureau with factual information
on how their credit customers pay their bills.
interest rate disclosure - ANSWERAn interest rate disclosure is a description of the
conditions of your loan as well as the terms of your interest rate agreement.
FDIC Federal Deposit Insurance Corporation - ANSWERThe Federal Deposit Insurance
Corporation (FDIC) is is a United States government corporation insuring deposits in
the United States against bank failure. The FDIC was created in 1933 to maintain
public confidence and encourage stability in the financial system through the
promotion of sound banking practices. In the instance that a bank goes bankrupt,
your money is protected and insured up to $250,000 per account. An insurance
company that helps protect your money in the bank institution.
, property taxes - ANSWEREvery year, the city, county and state charge taxes on every
parcel of real estate located within their borders. The revenue supports clean water
running out of your tap, the police keeping your neighborhood safe, Firemen and
women, State and local parks, and the garbage that gets picked up on your curbside.
HOME EQUITY LINE OF CREDIT (HELOC) - ANSWERA line of credit that is tied to the
equity of the borrower's residence.It is a loan set up as a line of credit for some
maximum draw, rather than for a fixed dollar amount.
CONVEYANCE - ANSWERa generic term for any written document which transfers
(conveys) real estate property or real property interests from one party to another.
A conveyance must be acknowledged before a notary
NEGATIVE AMORITIZATION - ANSWERNegative amortization - means that even when
you pay, the amount you owe will still go up because you are not paying enough to
cover the interest.
FINANCE CHARGE - ANSWERA finance charge- is the total amount of interest and
loan charges you would pay over the entire life of the mortgage loan.
DOWN PAYMENT - ANSWERA down payment is the amount of money a buyer pays
at closing to fund a home purchase, usually expressed as a percentage of the total
home price
PAYOFF DEMAND - ANSWERA statement prepared by a lender showing the
remaining terms on a mortgage or other loan. The payoff statement shows the
remaining loan balance and number of payments and the rate of interest. It includes
any missed payments, late fees and the mortgage interest owed through the
anticipated payoff date.
INTEREST RATE DISCLOSURE - ANSWERDescription of the conditions of your loan as
well as the terms of your interest rate agreement.
LIBOR (London Interbank Offered Rate) - ANSWERThe interest rate at which banks
offer to lend funds (wholesale money) to one another in the international interbank
market.
LENDER FEES - ANSWERLender fees are fees charged by Lenders for processing and
funding a loan. They can include application fees, attorney fees, recording fees, and
more.
RIDER(ADDENDUM) - ANSWERan attachment to a document which adds to or
amends it. Mortgage riders are a contingency of the loan and the borrower must sign
them in order for the lender to release the mortgage funds. The purpose of a
mortgage rider is to include special terms, conditions and situations affecting the
loan that are not present in the main mortgage document. Lenders require mortgage
contingency - ANSWERa clause in an agreement that keeps things from being legally
binding unless a condition is met.
A typical contingency clause might read like this: "This contract is contingent upon
Buyer successfully obtaining a mortgage loan at an interest rate of 6 percent or less."
recording fee - ANSWERThe fee charged by a government agency for registering or
recording a real estate purchase or sale, so that it becomes a matter of public record.
Recording fees are generally charged by the county (such as in the United States),
since it maintains records of all property purchases and sales.
recording - ANSWERRecording is the act of putting a real estate document into the
official records at the County Recorders or Recorder of Deeds Office. Usually, the
types of documents that are recorded affect title to real property such as a deed,
mortgage, easement, judgment, lien, foreclosure, or request for notice of default.
escrow company - ANSWEREscrow means that you're using a "third party"
(somebody who is neither the buyer or seller) to hold something of value, which
helps to make your transaction safer.
Ideally, this would be a disinterested (or neutral) third party - who doesn't care
whether the buyer or seller comes out ahead. The job of an escrow service is simply
to ensure that everybody sticks to their end of the bargain.
comps (comparables) - ANSWERComps, or comparables, are regarded as the single-
best tool in determining a home's value. They contrast criteria from recently sold
properties in a neighborhood, such as sale price, age of house, size, and square
footage. Real estate agents use comps to prepare a Comparative Market Analysis
(CMA) for their clients
credit bureau - ANSWERA credit bureau is an company that collects and maintains
individual credit information and sells it to lenders, creditors, and consumers in the
form of a credit report. Credit grantors provide the bureau with factual information
on how their credit customers pay their bills.
interest rate disclosure - ANSWERAn interest rate disclosure is a description of the
conditions of your loan as well as the terms of your interest rate agreement.
FDIC Federal Deposit Insurance Corporation - ANSWERThe Federal Deposit Insurance
Corporation (FDIC) is is a United States government corporation insuring deposits in
the United States against bank failure. The FDIC was created in 1933 to maintain
public confidence and encourage stability in the financial system through the
promotion of sound banking practices. In the instance that a bank goes bankrupt,
your money is protected and insured up to $250,000 per account. An insurance
company that helps protect your money in the bank institution.
, property taxes - ANSWEREvery year, the city, county and state charge taxes on every
parcel of real estate located within their borders. The revenue supports clean water
running out of your tap, the police keeping your neighborhood safe, Firemen and
women, State and local parks, and the garbage that gets picked up on your curbside.
HOME EQUITY LINE OF CREDIT (HELOC) - ANSWERA line of credit that is tied to the
equity of the borrower's residence.It is a loan set up as a line of credit for some
maximum draw, rather than for a fixed dollar amount.
CONVEYANCE - ANSWERa generic term for any written document which transfers
(conveys) real estate property or real property interests from one party to another.
A conveyance must be acknowledged before a notary
NEGATIVE AMORITIZATION - ANSWERNegative amortization - means that even when
you pay, the amount you owe will still go up because you are not paying enough to
cover the interest.
FINANCE CHARGE - ANSWERA finance charge- is the total amount of interest and
loan charges you would pay over the entire life of the mortgage loan.
DOWN PAYMENT - ANSWERA down payment is the amount of money a buyer pays
at closing to fund a home purchase, usually expressed as a percentage of the total
home price
PAYOFF DEMAND - ANSWERA statement prepared by a lender showing the
remaining terms on a mortgage or other loan. The payoff statement shows the
remaining loan balance and number of payments and the rate of interest. It includes
any missed payments, late fees and the mortgage interest owed through the
anticipated payoff date.
INTEREST RATE DISCLOSURE - ANSWERDescription of the conditions of your loan as
well as the terms of your interest rate agreement.
LIBOR (London Interbank Offered Rate) - ANSWERThe interest rate at which banks
offer to lend funds (wholesale money) to one another in the international interbank
market.
LENDER FEES - ANSWERLender fees are fees charged by Lenders for processing and
funding a loan. They can include application fees, attorney fees, recording fees, and
more.
RIDER(ADDENDUM) - ANSWERan attachment to a document which adds to or
amends it. Mortgage riders are a contingency of the loan and the borrower must sign
them in order for the lender to release the mortgage funds. The purpose of a
mortgage rider is to include special terms, conditions and situations affecting the
loan that are not present in the main mortgage document. Lenders require mortgage
