Chapter 13 preview · Real Estate Pre-Licensing (63 Hours)Vista previa del capítulo 13 · Real Estate Pre-Licensing (63 Hours)
Residential Mortgages
Chapter 13 of the state-approved course covers Residential Mortgages, focusing on the various types of mortgages and the processes involved in securing financing. This chapter is essential for understanding how to qualify for a loan and the roles of different mortgage programs.
Chapter audio lessonAudio del capítulo
The chapter audio discusses the essential elements of residential mortgages and the factors influencing loan approval.
Key termsTérminos clave
- adjustable rate mortgage (ARM)
- An ARM is a type of mortgage where the interest rate may change periodically based on changes in a corresponding financial index.
- FHA loan
- An FHA loan is a government-backed mortgage designed to help lower-income borrowers qualify for home financing with lower down payments.
- VA loan
- A VA loan is a mortgage option for veterans, active service members, and certain members of the National Guard and Reserves, offering favorable terms and no down payment.
- loan-to-value ratio (LTV)
- The LTV ratio compares the amount of the loan to the appraised value of the property, used to assess lending risk.
- mortgage fraud
- Mortgage fraud involves misrepresentation or omission of information on a mortgage application to obtain a loan under false pretenses.
Ask the AI tutorPreguntar al tutor de IA
Practice questions for this chapterPreguntas de práctica para este capítulo
- General liability insurance coverage does not cover ________
- Which of the following is the most common type of contingency?
- If the seller is a foreign person, the buyer must withhold ______ of the purchase price at closing and forward the withheld amount to the IRS
- Which costs are typically covered by the buyer?
- What happens if a buyer fails to perform his or her duties in a contract?
Frequently asked questionsPreguntas frecuentes
Is mortgage insurance required for FHA loans?
Yes, FHA loans require mortgage insurance premiums (MIP) to protect lenders against losses.
What is the Equal Credit Opportunity Act?
The Equal Credit Opportunity Act prohibits discrimination in lending based on race, color, religion, national origin, sex, marital status, or age.
What factors do lenders consider when underwriting a loan?
Lenders evaluate the borrower's credit history, income, employment status, and the value of the property to determine the risk of lending.
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