Mortgage Loans - correct answer Most common choice for financing real property. Can be conventional or non-conventional
Conventional Loan - correct
... [Show More] answer Neither federally insured nor guaranteed
Non-conventional Loan - correct answer Federally insured/guaranteed mortgage loans to encourage ownership (FHA, VA, USDA)
Contract for Deed - correct answer A means by which the seller passes possession but retains title to the property until the total or a substantial portion of the purchase price is paid. Installment contract. The two parties here are the vendor (owner) and the vendee (buyer).
Hypothecation - correct answer The action of pledging real property as security for a debt
Promissory Note - correct answer A written promise to pay a specified amount of money on demand or at a definite time
Lien Theory - correct answer When mortgage loan is used for purchase of real property, at closing the buyer receives the title and the lender has a lien
Title Theory - correct answer At closing the lender receives the title and will hold it until the lien is satisfied or paid off
Deed of Trust - correct answer Used instead of a traditional mortgage in Texas. Parties are borrows (trustor), lender (beneficiary), and trustee
Power of Sale Clause - correct answer Allows for non-judicial foreclosure
Trustee (Deed of Trust) - correct answer Acts in fiduciary relationship with beneficiary, released lien when not is paid or forecloses in the event of default
Mortgagor - correct answer "Gets the door" - buyer/borrower
Mortgagee - correct answer "Gets the fee" - lender
Primary Market - correct answer Market where consumers go to borrow money (mortgage bankers, mortgage brokers, banks, credit unions)
Secondary Market - correct answer Market where lenders go for money. Exists for the purchase and sale of existing mortgages to investors → greater liquidity to residential real estate market
Conforming Loans - correct answer Loans qualified to be purchased in the secondary market. Meet purchase requirements of Fannie Mae and Freddie Mac
Secondary Market Warehousing Agencies - correct answer Fannie Mae, Freddie Mac, Ginnie Mae
Freddie Mac Forms - correct answer Used to ensure loans can be sold in secondary market
Fixed-Rate Amortized Loan - correct answer Equal, regular payments of principal and interest until loan is repaid
Interest Paid In Arrears - correct answer Paid at the end of each payment period
Term Loan - correct answer Straight-loan, interest only paid until end of the term when the entire principal is repaid (zero amortization)
Blanket Loan - correct answer Covers more than one piece of property. Contains release clause [Show Less]