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Questions and Answers
A credit card balance is an example of an installment debt.
A credit card balance is an example of an installment debt.
False
Loan-level price adjustments (LLPAs) reflect risk levels.
Loan-level price adjustments (LLPAs) reflect risk levels.
True
Fannie Mae and Freddie Mac require private mortgage insurance on all loans with loan-to-value ratios over 80%.
Fannie Mae and Freddie Mac require private mortgage insurance on all loans with loan-to-value ratios over 80%.
True
Making a lump sum payment to the lender to lower the buyer's interest rate is known as a buydown.
Making a lump sum payment to the lender to lower the buyer's interest rate is known as a buydown.
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In a temporary buydown where the monthly payment increases each year, it is called a level payment buydown.
In a temporary buydown where the monthly payment increases each year, it is called a level payment buydown.
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For a temporary buydown on a fixed-rate loan, the lender will use the note rate to qualify the buyer.
For a temporary buydown on a fixed-rate loan, the lender will use the note rate to qualify the buyer.
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Having held the same job for ten years is a compensating factor that may enable an underwriter to approve a loan with a high debt-to-income ratio.
Having held the same job for ten years is a compensating factor that may enable an underwriter to approve a loan with a high debt-to-income ratio.
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A student loan with five years of monthly payments remaining is an example of an installment debt.
A student loan with five years of monthly payments remaining is an example of an installment debt.
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Court-ordered child support payments are considered part of an applicant's total monthly obligations.
Court-ordered child support payments are considered part of an applicant's total monthly obligations.
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Loan-level price adjustments (LLPAs) are charged only for investor loans or ARMs.
Loan-level price adjustments (LLPAs) are charged only for investor loans or ARMs.
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