What is a 'Freddie Mac' (Federal Home Loan Mortgage Corporation)?
Why A government-sponsored enterprise that purchases and securitizes conventional mortgage loans in the secondary market Is Correct
Answer B: A government-sponsored enterprise that purchases and securitizes conventional mortgage loans in the secondary market
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.
Key Finance Terms in This Question
People Also Study
Related Delaware Questions
- Which federal law requires lenders to provide a Loan Estimate to mortgage applicants?Finance
- Plottage value results from:Property Valuation
- Which federal law requires lenders to provide the Loan Estimate form within 3 business days of receiving a mortgage application?Finance
- Which type of mortgage loan is insured by the Federal Housing Administration?Finance
- Private mortgage insurance (PMI) is typically required when a conventional loan has a down payment of less than:Finance
- At a Delaware closing, the attorney's role includes:Escrow & Title
- An agency coupled with an interest cannot be terminated by the principal at will because:Agency
- A Delaware buyer purchases a home for $280,000. The buyer puts 10% down. What is the loan amount?Real Estate Math
Key Terms to Know
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Math Concepts
Study This Topic
Practice More Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →