Choose the most appropriate answer for each.
-a percentage reflecting what a lender will lend divided by the sale price or market value of the property, whichever is less
A)Amortized loan
B)Amortization tables
C)Balloon loan
D)Budget mortgage
E)Conventional loan
F)Discount point
G)Equity
H)FHA
I)Impound account
J)Loan balance table
K)Loan origination fee
L)Loan-to-value ratio
M)Maturity
N)Partially amortized loan
O)PITI payment
P)PMI
Q)Point
R)Principal
S)Term loan
T)UFMIP

Question

Quizplus · Accepted Answer

The loan-to-value ratio is a percentage that reflects what a lender will lend divided by the sale price or market value of the property, whichever is less.

Answer: P
 PMI stands for Private Mortgage Insurance, which is typically required when a borrower has a loan-to-value ratio of more than 80%. It protects the lender in case the borrower defaults on the loan.

Answer: T
 UFMIP stands for Upfront Mortgage Insurance Premium, which is required for FHA loans. It is a one-time fee that is typically added to the loan balance and helps to ensure that the borrower can repay the loan.

Note: Other options listed are not relevant to the definition given.

Choose the Most Appropriate Answer for Each