Champions School Of Real Estate Finance Exam 2024 Tested And VerifiedA home equity loan available to homeowners over 62 years of age - the lender makespayments to the borrower based on the equity in the property - the loan comes due upon thesale of the property or the death of the owner. - Reverse Annuity MortgageA loan with an interest rate tied to a readily available index - the rate will be adjustedperiodically causing payment changes. - Adjustable Rate Mortgage (ARM)The refusal to lend in a particular geographic area - prohibited by the CommunityReinvestment Act. Prohibited by Federal Fair Housing Laws. - RedliningA home equity line of credit - similar to a credit card but secured by real property. - Open-end LoanA combination of the TILA initial disclosure and the RESPA good faith estimate which must beprovided to a buyer at the time of, or within three business days of loan application. - LoanEstimateThe private equivalent of FHA insurance. Allowing for high LTV / low down paymentconventional loans. Insures the lender's risk. - PMIA clause in a mortgage allowing the lender to declare the whole amount of the principal dueand payable in the event of default by the borrower. - Acceleration ClauseA debt at closing as shown on the closing disclosure. - DebitThe percent of the price that the buyer is borrowing. High ratio means low down payment. -Loan to value ratio (LTV)A monthly payment amount of principal and interest required to amortize a loan of $1,000based on the interest rate and the term of the loan - loan amount divided by 1,000 times thefactor equals payment. (LOAN/[1000x]) = payment - Loan FactorPreview Mode
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