A hazard for borrowers on loans whose interest rates have been bought down for
negative financial leverage.
higher interest rates when the buydown period expires.
all of the above.
A lender seeking to appreciably lower payments for a doctor in residency so that he could qualify for the loan would use
deferred interest mortgage(DIM)
flexible loan insurance program(FLIP)
variable interest rate mortgage(VIRM)
reverse annuity mortgage(RAM)
price level adjustable mortgage(ARM)
A mortgage loan for $30,000, 9 percent, 30 years has been granted. How much is the first monthly interest?
Credit investigation includes
Credit rating report
Savings and checking deposit verification
All of the above
None of the above
Criteria used in residential loan underwriting include
I. evaluation of the property as collateral security
II. evaluation of borrowers likelihood of prompt repayment
both I and II
neither I nor II