The maximum conforming loan limit for a single-family home (as set by FHFA and applicable in most NC counties) represents:
Why The maximum loan amount Fannie Mae and Freddie Mac will purchase, which changes annually Is Correct
Answer B: The maximum loan amount Fannie Mae and Freddie Mac will purchase, which changes annually
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.
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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.
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.
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
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