Unit 12 Practice Exam Copy

Mortgage lenders in Florida have a

The legal evidence of a mortgage debt is the

When a borrower can have possession of mortgaged property while making payments on the loan, it is often called

A borrower breached the covenants of his mortgage by failing to make payments. The borrower fails to cure the breach. What clause will allow the lender to call the entire balance of the loan due at once?

The clause in a mortgage that requires the lender to give the borrower a release from the mortgage debt after the last payment is made is called

Mr. Jones purchased a new home for $500,000. He made a down payment of $100,000. What is the loan-to-value ratio on this loan?

Mr. Jones purchased a new home for $500,000. He made a down payment of $100,000. What is the down payment as a percent of the loan?

What is the approximate monthly interest on a 5% loan that has a balance of $300,000?

When the lender sells the loan to the investor, the lender assigns all rights and duties to the investor, using a document called an assignment of mortgage. Which document will the investor require from the that verifies the loan balance, interest rate, payment amount, and the number of payments remaining?

When a buyer purchases a property and acknowledges the existence of a mortgage, but does not accept personal liability for the debt, the buyer has purchased the property

What are the typical steps a lender takes when the borrower defaults on a loan?

A buyer at a foreclosure sale gets title through which instrument?

Sometimes a default can be settled without a foreclosure action if the borrower gives the lender a deed to the property subject to existing liens. Because it does not go through the courts, it is called a

The monthly principal and interest on a loan is $1,450.00. The annual taxes are estimated at $3,000 and the hazard insurance is $1,800. What will the total PITI payment be if the lender requires an escrow?

You are buying a house for $600,000 and have applied for a mortgage with Harris Mortgage Company. You agree to make a down payment of 20% of the purchase price and finance the purchase with an 80% loan. The interest rate on the loan is 4 percent but the investor who is buying the loan requires a yield of 4 1/2 percent. How much must the borrower pay for  points?