Real Estate Finance #1

A buyer will loan from the bank for the purpose of a house. The amount of difference between what the total price will be and the amount he can boroow is reffered to as:

• equity

• reservation deposit

• downpayment

• loan balance

In computing the amortization factor on financing of real estate sales, the factors will be based on the following

• capacity of the buyer

• number of years to pay

• Interest rate and term of payment

• interest

It is not considered a sale on financing or installment in the purchase of a lot

• Pagibig financing

• Spot cash

• Bank financing

• Lending investor's financing

The payment to be made monthly by the lot buyer on installment is generally referred to as

• monthly amortization

• monthly payments

• amortization schedule

• financing payments

If financing was made in the amount of 18% per annum, what would be the monthly interest rate to be applied on a 24 months payment scheme

• 1.0%

• 1.5%

• 2.0%

• 2.5%

The maximum age limit for the maturity of payment of the loan from Pagibig financing for a housing unit is

• 50

• 60

• 65

• 70

An additional requirement in obtaining a loan which is to pay off the loan or outstanding obligation upon the death of borrower

• Loan assurance agreement

• Mortgage Redemption insurance

• Housing financing insurance

• Mortgage loan insurance

A payment scheme where the buyer of a condo unit pays the total price within a short period of time without interest is referred to as

• short-term financing

• deferred cash payment

• discounted cash payment

• deferred financing scheme

Anna was paying a monthly amortization of Php54,100 at 21% interest per annum. if the amortization factor is 0.02705, how much is the amount being financed?

• 1,000,000.00

• 1,500,000.00

• 2,000,000.00

• 2,500,000.00

In a housing financing scheme based on diminishing balance, the interest in the payments

• increases while the payment of the principal decreases

• decreases while the payment of principal increases

• remain constant for the term of the loan

• remain constant but the principa decrease