David Saks

An appraisal is generally considerd to be based on value according to a specific calendar and time element imposed on the various factors involved in estimating value.

Is this true or false ?

Please take your time. The solution is posted below the wildlife photo.

A. True

An appraisal is an opinion of value and coincides with market conditions and other conditions of value as of a specofic date associated with the appraisal.

A house had been appraised for the loan at $516,000 and the sales price is $510,000.

The loan-to-value ratio is 85%.

What is the eligible amount of the loan based on this loan-to-value ratio ?

How much additional money will the buyer have to bring to the closing table based on the loan-to-value amount ?

Take your time. The solution is posted below the wildlife photo.

A. $438,600 at 85% LTV

    $71,400 additional needed to close

$516,000 appraised value
x
0.85 LTV
=
$438,600 loan amount based on 85% LTV

$510,000 Sales price
minus
$438,600 LTV amount of loan
=
$71,400 additional needed at closing

If a lender wants to produce a better yield on a loan the lender may  increase the loan amount by 3% which will be paid at the closing table as a charge known as an origination fee.

Is this fact true or false ?

Please take your time. The solution is posted below the wildlife photo.

A. False

When the lender wants to produce a better yield on the loan the lender may charge discount points which are a percentage of the loan amount.

The yield is the profit return on the loan.

When we talk about an adjustable rate mortgaqge we're talking about a loan that is adjusted in a way to increase and decrease the amount but the payment always remains the same.

Is this fact true or false ?

Take your time. The solution is posted below the wildlife photo.

A. False

The payment amount and the interest rate on an adjustable rate mortgage are adjusted at intervals in the loan cycle.

The adjustable rate mortgage is based on an index and the payment may increase or decrease depending on the index.

The index is a publ;ished statistical revue that analyzes the costs of borrowing money. It's the foundation for the adjustable rate mortgage.

COFI is an example.

When a conventional loan is sought by the borrower, private mortgage insurance to protect the loan is usually not required if the loan-to-value ration of the laon is over 95%.

Is this fact true or false ?

Please remember to take your time. The solution is posted below the royalty free wildlife photo.

A. False

If the loan-to-value ration of a loan is more than 80% private mortgage insurance will be required.

The FHA buys and sells loan in the secondary mortgage market as well as makes loans to borrowers in the primary mortgage market.

Is this fact true or false ?

Remember to take your time. The solution is posted below he wildlife photo.

A.False

The only thing the FHA does is insure a loan made by the lender and doesn't actually make any loans.

The FHA doesn't deal in loans in the secondary mortgage market either.

It is well known that if a borrower's credit is excellent a downpayment is not required for an FHA loan.

Is this fact true or false ?

Pleaser take your time. The solution is posted below the wildlife photo.

A. False

A downpayment is always required for an FHA loan.

A VA loan is a loan that may never be assumed by anyone other than an eligible veteran.

Is this true or false ?

Please take your time. The solution is posted below the wildlife photo.

A. False

It's possible for anyone to assume a VA loan and the person assuming the loan doesn't have to be a veteran.

The buyer has to pass a credit check before they're allowed to assume the loan, however.

Once the trustee's sale has been held and all of the expenses related to the foreclosure have been paid and all of the liens have been satisfied, if there is any money left over it belongs to the court.

Is this fact true or false ?

Please take your time. The solution posted below the wildlife photo.

A. False

If anything is left over after everybody's been paid off, what remains belongs to the borrower or the owner that was foreclosed.

If a borrower is facing nonjudicial foreclosure the borrower is entitled to the right of being able to cure the default on the loan by paying off the delinquincy and reinstating the loan before the trustee's sale is held.

This right is known as the equitable right of redemption.

Is this fact true or false ?

Please take your time. The solution is posted below the wildlife photo.

A. False & True

The equitable right of redemption is reserved for the borrower in a judicial foreclosure, not a nonjudicial foreclosure.

The borrower may however cure the loan before the nonjudicial sale and this is known as the right of reinstatement before the sale.

In a nonjudicial foreclosure the property is usually not allowed any post-sale redemption options.

Consult with a legal professional for more on how redemption is applied following or before a foreclosure sale.