Real Estate Financing Options Quiz

Car loans are not typically used for real estate financing.

Amortizing loans involve regular fixed payments, gradually paying off both principal and interest.

Pre-approval indicates conditional approval for a loan, subject to further verification.

Conventional mortgages often require a 20% down payment.

FHA loans are insured by the Federal Housing Administration.

Government-backed loans often have lower down payment requirements to facilitate home ownership.

Bridge loans provide short-term financing to acquire a new property before selling an existing one.

Interest-only loans require the borrower to pay only interest for an initial period before principal payments begin.

PMI protects the lender by covering a portion of the loan amount in case of borrower default.

A fixed-rate mortgage maintains a constant interest rate over the entire loan duration.

In a recourse loan, the lender can go after the borrower's assets beyond the collateral in case of default.

Points are upfront fees paid as a percentage of the loan amount to lower the interest rate.

LTV (Loan-to-Value) is a ratio expressing the loan amount compared to the property's appraised value.

REITs manage and invest in real estate properties, generating income for investors.

Amortization is the gradual repayment of a loan over time through scheduled payments.

Reverse mortgages allow homeowners to receive payments based on the equity in their homes.

CDOs bundle mortgage-backed securities for sale to investors.

A deed of trust serves as security for the repayment of the loan in real estate financing.