Which of the following is an example of a non-conforming loan?
Why A jumbo loan exceeding Fannie Mae/Freddie Mac limits Is Correct
Answer B: A jumbo loan exceeding Fannie Mae/Freddie Mac limits
Exam Tip: Finance
Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.
People Also Study
Related Alabama Questions
- An Alabama real estate agent advising a buyer on financing should know that the maximum conventional loan amount conforming to Fannie Mae and Freddie Mac limits is referred to as the:Finance
- In Alabama, which type of loan has an interest rate that changes periodically based on a market index?Finance
- Under Alabama mortgage law, a lender's right to demand full loan repayment if the property is sold is called a(n):Finance
- The secondary mortgage market in Alabama allows lenders to:Finance
Key Terms to Know
The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Math Concepts
Study This Topic
Practice More Alabama Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alabama Quiz →