1. With a Reverse Annuity Mortgage:
a. The borrower receives monthly payments and makes a large repayment at the end of the mortgage term
b. The loan amount greatly exceeds the value of the house
c. The payments are designed for young couples purchasing their first house
d. The rate is adjusted every six months
2. The term “cash equivalent” value refers to:
a. the value of a residential property while it is listed
b. the amount of discount points charged by a lender
c. the value of a property if sold for all cash
d. the cash equivalency of the mortgage on a property
3. The term “carryback financing” refers to:
a. A motivated seller who takes back a note at a low rate in order to sell the property
b. A situation where the lender takes the property back after a default on the loan
c. As assumable loan in which a lender waives the discount points in order to complete the loan transaction
d. An assumable FHA loan
4. Mortgage Revenue Bonds, a class of bonds called municipals, are issued by state and local governments and:
a. allow the government to purchase property for government use
b. provide an interest rate at a higher rate than corporate bonds
c. provide interest that is free of federal taxation
provide interest that is free from capital gains taxation