Multiple Choice Questions:
A mortgagor´s monthly salary or stable income is called what?
The gradual reduction of a debt through systematic principal repayments over the life of the loan is called what?
a) Debt service
b) Mortgage payment
A personal promise to repay the loan backed up with collateral is called what?
a) Secured debt
b) Prepayment penalty
c) Unsecured debt
A limit on a contract interest rate change over an adjustment period is called overall cap.
A charge paid by the mortgagor at origination to reduce or buy down the mortgage contract rate is called a discount point.
A series of cash flows of the same amount is called debt service.
The risk that interest rates will change and positively affect the interest rate spread is called interest rate risk.
A document transferring legal title to a trustee is called deed of trust.
c) d) a)
False, True, False, False, True