RLE 85 CH 11 Final Prep

Front

All of the following types of loans are usually used for commercial properties and subdivision developments EXCEPT: blanket, construction, sale-and-leaseback, wraparound.

Back

wraparound.

Front

A note and mortgage created at the time a property is bought in order to make the sale possible is a

Back

purchase-money loan.

Front

A borrower took out an FHA‑insured loan on a single‑family home on August 1, 1995. If the borrower wishes to prepay the loan, which of the following statements is TRUE? Options: The borrower must give the lender 30 days’ written notice of his or her intent to prepay and may be charged a penalty of one month’s interest. If the borrower fails to give the lender 30 days written notice of his or her intent to prepay, the lender has the option of charging a penalty of up to 30 days’ interest. No written notice is required, but the lender is permitted to charge a 20% prepayment penalty. No written notice is required.

Back

No written notice is required.

Front

A tax system in which the rate remains the same regardless of the value of the thing taxed is a

Back

proportional tax system.

Front

A loan that covers more than one parcel or lot, usually used to finance subdivision developments, is a

Back

blanket loan.

Front

What is the term used to describe the additional 1.5% in Bob’s adjustable-rate mortgage?

Back

Margin

Front

The Federal Reserve sets interest rates that lending institutions pay to borrow, which is called

Back

discount rate.

Front

A tax system in which the rate increases in direct relation to the value of the thing taxed, such as the current federal income tax, is what kind of tax system?

Back

Progressive

Front

A tax system in which the rate declines as the value of the thing taxed increases is

Back

a regressive tax system.

Front

A loan that includes not only the real estate but also all personal property and appliances installed on the premises is a

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package loan.