what is a lien theory state?

• a state in which a mortgagee holds legal title to a secured property

• a state in which a mortgagee has an equitable title to a secured property

• a state that allows a real estate owners creditors to record liens against the owners property

• a state in which a lien is considered as a conveyance

what is the function of a note in a mortgage or trust deed financing arrangement

• it is the lenders security instrument in the collateral property

• it is evidence of ownership of the mortgage or trust deed

• it contains the borrowers promise to maintain the value of the property given as collateral for a loan

• it is evidence of the borrowers debt to the lender

when homebuyer henry pledges his newly purchased home as collateral for a mortgage loan, the evidence of the pledge is the

• trust deed or mortgage

• promissory note

• loan commitment

• loan receipt

the borrower in a mortgage loan transaction is known as the

• mortgagee

• mortgagor

• lienor

• trustee

if a borrower obtains an interest-only loan of $200k at an annual interest rate of 6%, what is the monthly interest payment?

• $1200

• $600

• $500

• $1000

if a borrowers monthly interest payment on an interest-only loan at an annual interest rate of 6% is $500, how much was the loan amount?

• $72k

• $100k

• $120k

• $50k

a borrower of a $50k interest-only loan makes annual interest payments of $3750. what interest rate is the borrower paying?

• 7.5%

• .75%

• 3.75%

• 8.5%

maria borrows $100k and pays 2 points for the loan. how much does she pay in points

• $200

• $2000

• $1200

• it depends on interest rate

which of the following is true of an amortizing loan?

• the amount of annual interest paid is the same for every year of the loan term

• part of each periodic payment is applied to repayment of the loan balance in advance and part is applied to payment of interest in arrears

• except for any points that may be paid, the interest on the loan balance is usually paid in advance

• the interest rate is reduced each year to maintain equal payments even though the outstanding loan balance is similar

for a loan that is not backed by the federal housing administration or veterans administration, and for which the borrower is making a down payment of less than 20%, the lender is likely to require the borrower to obtain

• a subrogation agreement

• private mortgage insurance

• a letter of credit

• a co-signer on the note