Who must pay the discount points on a FHA loan? A) Anyone who agrees to B)...

Question

Question

Who must pay the discount points on a FHA loan?

A) Anyone who agrees to

B) Seller

C) Buyer

D) There are no points on a FHA loan

Answer 1

Answer #1

Please find below the solution ... let me know if you need any clarification..

correct answer is option : A) Anyone who agrees to .

Under FHA loan discount point can be paid by the buyer or seller as per the term of the contract.

Answer 2

Similar Homework Help Questions

31. Seller delivers goods to Buyer who agrees to pay the S5.000. Price in 60 days....

31. Seller delivers goods to Buyer who agrees to pay the S5.000. Price in 60 days. Selle following is false? a. Upon receipt of notice of the assignment, Buyer (the obligor) must pay Bank to b. Seller (the assignor) has no right to make further assignments or collect c. Seller is obligated to pay the assignee in the event the buyer fails to pay. d. After notice of the assignment, Bank (the assignee) can sue Buyer directly if Buye does...
An individual agrees to pay $6,000 per year for three years to payoff a car loan....

An individual agrees to pay $6,000 per year for three years to payoff a car loan. His payments are always made at the end of each year. If the interest rate in year 1 is 3%, in year 2 is 3.5% and in year 3 is 4%, and if compounding is done twice a year, how much did the car originally cost? (That is, work out the price he must have agreed to pay for the car.)
Question 32 (2 points) 32. Which of the following is true of a firm offer? A)...

Question 32 (2 points) 32. Which of the following is true of a firm offer? A) a. It occurs when parties intend to be bound by a contract but fail to mention the price B) b. It occurs when a seller agrees to sell all its produce to a particular buyer C) c. It occurs when a merchant promises to hold an offer open without any consideration D) d. It occurs when a buyer agrees to buy all its requirements...

A buyer agrees to purchase a house for $184,500. The buyer pays $2,000 EMD and obtains...

A buyer agrees to purchase a house for $184,500. The buyer pays $2,000 EMD and obtains a new mortgage loan for $167,600. The purchase contract provides for a March 15 settlement. The buyer and the sellers prorate the current year's real estate taxes of $1880.96, which have been prepaid. The buyer has additional closing costs of $1,250, and the sellers have other closing costs of $850. How much cash must the buyer bring to the settlement? a. $16,389.09 b. $17,639.10...
11) Which of the following is a characteristic of a balloon loan? A) Prior to maturity,...

11) Which of the following is a characteristic of a balloon loan? A) Prior to maturity, the borrower only pays interest (usually monthly). B) The loan is typically 10 - 15 years in maturity. C) At maturity, the entire loan amount is due. D) All of the above are true. E) Only A and C of the above are true. 12) Which of the following protects the mortgage lender's right to sell property if the underlying loan defaults? A) A...
Which section in a CAR Residential Purchase Agreement shows who will pay the county transfer fee,...

Which section in a CAR Residential Purchase Agreement shows who will pay the county transfer fee, HOA related fees, private transfer fee, city transfer fee, and home warranty? a) Items included in sale b) Escrow c)Note to Buyer and Seller d) Other costs

Based on costs alone which borrower below would find the FHA Loan the most suitable for...

Based on costs alone which borrower below would find the FHA Loan the most suitable for their borrowing needs: a. A borrower with a credit score of 490 and 3.5% down payment b. A borrower with a credit score of 550 and 10% down payment c. A borrower with a credit score of 660 and 15% down payment d. A borrower with a credit score of 750 and 20% down payment
Two mortgage options are available: a 20-year fixed-rate loan for 6.5% with no discount points, and...

Two mortgage options are available: a 20-year fixed-rate loan for 6.5% with no discount points, and one with discount points for 6.25%. You will be living in the house for 10 years. How much are you willing to pay in points for the 6.25% loan? Assume a $100,000 mortgage. please type your answer
[QUESTION] 39. Suppose you are interested in obtaining a mortgage loan for $250,000 in order to...

[QUESTION] 39. Suppose you are interested in obtaining a mortgage loan for $250,000 in order to purchase your principal residence. Your lender has suggested that you might be interested in taking an FHA loan. In order to do so, you must pay an additional up-front mortgage insurance premium (UFMIP) of 1.0% of the mortgage balance. If the interest rate on the fully-amortizing mortgage loan is 5% and the term is 30 years, what is your monthly mortgage payment assuming the...

In a discount interest loan, you pay the interest payment up front. For example, if a...

In a discount interest loan, you pay the interest payment up front. For example, if a 1-year loan is stated as $50,000 and the interest rate is 7.50%, the borrower “pays” 0.0750 × $50,000 = $3,750 immediately, thereby receiving net funds of $46,250 and repaying $50,000 in a year. a. What is the effective interest rate on this loan? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) b. What is the effective...