Arizona Real Estate License Real Estate Financing Concepts Questions and Answers Flashcards
6 cards from real Arizona Real Estate License practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Arizona Real Estate License Real Estate Financing Concepts Questions and Answers flashcards as text
In Arizona, which type of mortgage clause allows the lender to demand full repayment if the borrower sells or transfers the property?
Answer: Due-on-sale clause
A due-on-sale clause gives the lender the right to demand immediate full payment of the loan balance when the property is sold or transferred.
What is the primary difference between a mortgage and a deed of trust in Arizona real estate financing?
Answer: A deed of trust involves three parties while a mortgage involves two
A deed of trust involves the borrower, lender, and a neutral third-party trustee, whereas a mortgage involves only the borrower and lender.
Which federal regulation requires lenders to provide borrowers with a Loan Estimate within three business days of receiving a mortgage application?
Answer: TILA-RESPA Integrated Disclosure (TRID)
TRID rules under the combined TILA-RESPA framework require lenders to deliver a Loan Estimate within three business days of a completed loan application.
A borrower obtains a loan where monthly payments cover only the interest for the first five years. What type of loan is this?
Answer: Interest-only loan
An interest-only loan requires the borrower to pay only the interest portion for a set period before principal payments begin.
In Arizona, what is the typical redemption period after a judicial foreclosure sale?
Answer: Six months
Arizona law generally provides a six-month statutory redemption period following a judicial foreclosure sale.
Which ratio compares a borrower's total monthly debt obligations to their gross monthly income and is commonly used by lenders in Arizona?
Answer: Debt-to-income ratio
The debt-to-income ratio measures all recurring monthly debt payments against the borrower's gross monthly income to assess lending risk.