Tuesday, May 14, 2013

Chapter 10 Qs

Lulu Carrizales

  1. The Reference to a mortgage links the mortgage to the __________.
    a.  Debt service
    b.  prepayment clause
    c.  Collateral
    d.  None of the above
  2. The requirement that the entire loan balance be paid off if the borrower sells the collateral is called:
    a.  Due on sale clause
    b.  Prepayment clause
    c.  Both
    d.  Neither
  3. The seller is the ________ and the Buyer is the ________.
    a.  Grantee; Grantor
    b.  Grantor; Grantee
    c.  Lessor;  Lessee
    d.  Lessee; Lessor
  4. The Landlord is known as the Lessor. (T/F)
  5. The Deed of trust is a document transferring legal title to a lender.  (T/F)
  6. The Equitable Title is the right to legal title if all obligations of the promissory note are fulfilled.  (T/F)
  7. Amortization is the gradual reduction of a debt from balloon payments.  (T/F)
  8. When interest rates go down, bond or mortgage payments do too.  (T/F)

1.  C
2.  A
3.  B
4.  T
5.  F
6.  T
7.  F
8.  F

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