Question 1

Any loan payment twice as large as a regular payment is called a:

Accepted Answer

A)  balloon 
B)  wrap 
C)  teaser 
D)  cap 
A)  balloon 
B)  wrap 
C)  teaser 
D)  cap A

Question 2

$300,000 loan at 8% payable $2,000 per month is what type of note?

Accepted Answer

A)  installment 
B)  straight 
C)  wraparound 
D)  amortized 
A)  installment 
B)  straight 
C)  wraparound 
D)  amortized B

Question 3

In a trustee's sale, the proceeds of the sale were sufficient to pay the demands of the first and second trust deed holders, foreclosure costs, and provide a small cash surplus. What is the priority schedule for the distribution of the cash proceeds?

Accepted Answer

A)  trustor; first trust deed; second trust deed; foreclosure costs 
B)  foreclosure costs; trustor; first trust deed; second trust deed 
C)  first trust deed; second trust deed; foreclosure costs; trustor 
D)  second trust deed; first trust deed; foreclosure costs; trustor 
A)  trustor; first trust deed; second trust deed; foreclosure costs 
B)  foreclosure costs; trustor; first trust deed; second trust deed 
C)  first trust deed; second trust deed; foreclosure costs; trustor 
D)  second trust deed; first trust deed; foreclosure costs; trustor C

Question 4

Late charges on a loan:

Accepted Answer

A)  are charged at a standard $50.00 per month 
B)  cannot legally be charged 
C)  added to the balance of the loan 
D)  may not exceed five dollars or 10 percent of the principal and interest part of an installment payment, whichever is greater 
A)  are charged at a standard $50.00 per month 
B)  cannot legally be charged 
C)  added to the balance of the loan 
D)  may not exceed five dollars or 10 percent of the principal and interest part of an installment payment, whichever is greater

Question 5

If a property had a net operating income of $24,000 and the investor wanted an 8% return, how much should he offer for the property?

Accepted Answer

A)  $240,000 
B)  $250,000 
C)  $300,000 
D)  none of the above 
A)  $240,000 
B)  $250,000 
C)  $300,000 
D)  none of the above

Question 6

RESPA stands for:

Accepted Answer

A)  Real Estate Settlement Procedures Act 
B)  Real Estate Salesperson Association 
C)  Real Estate Syndication Planning Act 
D)  Real Estate Settlement Program Act 
A)  Real Estate Settlement Procedures Act 
B)  Real Estate Salesperson Association 
C)  Real Estate Syndication Planning Act 
D)  Real Estate Settlement Program Act

Question 7

A negative amortized ARM means:

Accepted Answer

A)  it can cause some problems in later years. 
B)  the payments may not cover the annual interest. 
C)  the unpaid interest is added to the principal. 
D)  all of the above. 
A)  it can cause some problems in later years. 
B)  the payments may not cover the annual interest. 
C)  the unpaid interest is added to the principal. 
D)  all of the above.

Question 8

Which of the following regarding a Trustee's Sale is false?

Accepted Answer

A)  the sale must be advertised in a newspaper of general circulation in the area 
B)  after the sale, the dispossessed owner has a one-year right of redemption 
C)  the sale must be held in a public place 
D)  the beneficiary doing the foreclosing is allowed to submit the loan balance and foreclosure costs instead of cash 
A)  the sale must be advertised in a newspaper of general circulation in the area 
B)  after the sale, the dispossessed owner has a one-year right of redemption 
C)  the sale must be held in a public place 
D)  the beneficiary doing the foreclosing is allowed to submit the loan balance and foreclosure costs instead of cash

Question 9

Under the Trustee's Sale procedure, after a Notice of Default has been recorded, a borrower has how long to reinstate by making up past due payments, penalties, late charges, and trustee expenses?

Accepted Answer

A)  5 days prior to trustee's sale date 
B)  90 days 
C)  3 months 
D)  1 year 
A)  5 days prior to trustee's sale date 
B)  90 days 
C)  3 months 
D)  1 year

Question 10

An investor wants to acquire income property that will generate a 10% cap rate. A 6-unit apartment complex rents for $950 per unit per month. Vacancies are 5% of gross rents and operating expenses total $20,500 per year. What is the maximum the investor should offer for this property? (round to nearest $1,000)

Accepted Answer

A)  $684,000 
B)  $573,000 
C)  $445,000 
D)  $403,000 
A)  $684,000 
B)  $573,000 
C)  $445,000 
D)  $403,000

Question 11

A copy of a Mortgage Loan Disclosure Statement prepared by the broker and signed by the borrower must be retained by the broker for at least:

Accepted Answer

A)  five years 
B)  four years 
C)  three years 
D)  two years 
A)  five years 
B)  four years 
C)  three years 
D)  two years

Question 12

The loan-to-value ratio on a mortgage is defined as the:

Accepted Answer

A)  loan amount as a percentage of sales price 
B)  loan amount as a percentage of assessed value 
C)  loan amount as a percentage of appraised value 
D)  monthly payments as a percentage of the face amount of the loan 
A)  loan amount as a percentage of sales price 
B)  loan amount as a percentage of assessed value 
C)  loan amount as a percentage of appraised value 
D)  monthly payments as a percentage of the face amount of the loan

Question 13

The successful bidder at a Trustee's Sale (foreclosure) receives what type of deed?

Accepted Answer

A)  trustee's 
B)  grant 
C)  quitclaim 
D)  sheriff's 
A)  trustee's 
B)  grant 
C)  quitclaim 
D)  sheriff's

Question 14

A real estate promissory note that reads "$50,000 principal payable interest only monthly at a rate of 8%" is what type of promissory note?

Accepted Answer

A)  straight 
B)  installment 
C)  principal and interest 
D)  accommodation 
A)  straight 
B)  installment 
C)  principal and interest 
D)  accommodation

Question 15

A lender foreclosed on a California home that had a VA loan. The proceeds from the sale were not enough to cover the outstanding loan amount. Which of the following statements are true?

Accepted Answer

A)  The lender takes the loss and cannot do anything about it. 
B)  The lender can sue the seller who sold the home to the veteran. 
C)  The lender cannot sue because California is an anti-deficiency judgment state. 
D)  The lender can sue for a deficiency judgment. 
A)  The lender takes the loss and cannot do anything about it. 
B)  The lender can sue the seller who sold the home to the veteran. 
C)  The lender cannot sue because California is an anti-deficiency judgment state. 
D)  The lender can sue for a deficiency judgment.

Question 16

Real estate advertisements must comply with:

Accepted Answer

A)  ECOA p. 207 Equal Credit Opportunity Act prohibits lenders from discriminating. 
B)  APR p. 207 Annual Percentage Rate is an effective interest rate on the loan. 
C)  GPM p. 198 Graduated Payment Mortgage is a type of loan. 
D)  Reg Z 
A)  ECOA p. 207 Equal Credit Opportunity Act prohibits lenders from discriminating. 
B)  APR p. 207 Annual Percentage Rate is an effective interest rate on the loan. 
C)  GPM p. 198 Graduated Payment Mortgage is a type of loan. 
D)  Reg Z

Question 17

To settle the estate of the deceased, a probate sale is held on a mobile home. The first court bid is $30,000; the next minimum bid must be for at least:

Accepted Answer

A)  $31,000 
B)  $32,000 
C)  $33,000 
D)  $31,750 
A)  $31,000 
B)  $32,000 
C)  $33,000 
D)  $31,750

Question 18

An annual percentage rate (APR):

Accepted Answer

A)  is not an interest rate but rather a percentage rate that reflects the effective interest rate on the loan. 
B)  is an interest rate that includes tax service fees. 
C)  is not an interest rate; it is a fee for lending. 
D)  is an interest rate that only applies to refinancing. 
A)  is not an interest rate but rather a percentage rate that reflects the effective interest rate on the loan. 
B)  is an interest rate that includes tax service fees. 
C)  is not an interest rate; it is a fee for lending. 
D)  is an interest rate that only applies to refinancing.

Question 19

The Equal Credit Opportunity Act requires a lender to:

Accepted Answer

A)  quote interest rates as annual percentage rates (APR) 
B)  disclose all closing costs 
C)  use a HUD approved uniform closing statement 
D)  not discriminate on the basis of race, creed, color, sex, origin, plus other protected categories 
A)  quote interest rates as annual percentage rates (APR) 
B)  disclose all closing costs 
C)  use a HUD approved uniform closing statement 
D)  not discriminate on the basis of race, creed, color, sex, origin, plus other protected categories

Question 20

Which of the following words expresses a meaning most completely opposite to the term "alienation"?

Accepted Answer

A)  amortization 
B)  ad valorem 
C)  acquisition 
D)  acceleration 
A)  amortization 
B)  ad valorem 
C)  acquisition 
D)  acceleration

Any loan payment twice as large as a regular payment is called a:

$300,000 loan at 8% payable $2,000 per month is what type of note?

In a trustee's sale, the proceeds of the sale were sufficient to pay the demands of the first and second trust deed holders, foreclosure costs, and provide a small cash surplus. What is the priority schedule for the distribution of the cash proceeds?

Late charges on a loan:

If a property had a net operating income of $24,000 and the investor wanted an 8% return, how much should he offer for the property?

RESPA stands for:

A negative amortized ARM means:

Which of the following regarding a Trustee's Sale is false?

Under the Trustee's Sale procedure, after a Notice of Default has been recorded, a borrower has how long to reinstate by making up past due payments, penalties, late charges, and trustee expenses?

A copy of a Mortgage Loan Disclosure Statement prepared by the broker and signed by the borrower must be retained by the broker for at least:

The loan-to-value ratio on a mortgage is defined as the:

The successful bidder at a Trustee's Sale (foreclosure) receives what type of deed?

A real estate promissory note that reads "$50,000 principal payable interest only monthly at a rate of 8%" is what type of promissory note?

A lender foreclosed on a California home that had a VA loan. The proceeds from the sale were not enough to cover the outstanding loan amount. Which of the following statements are true?

Real estate advertisements must comply with:

To settle the estate of the deceased, a probate sale is held on a mobile home. The first court bid is $30,000; the next minimum bid must be for at least:

An annual percentage rate (APR):

The Equal Credit Opportunity Act requires a lender to:

Which of the following words expresses a meaning most completely opposite to the term "alienation"?

Introduction to Real Estate

Part I: Legal Description, Method of Acquiring Title , and Deeds

Encumbrances, Liens, and Homesteads

Real Estate Agency

Real Estate Contracts and Mandated Disclosures

Practical Real Estate Mathematics

Part I: Real Estate Lenders

Real Estate Appraisal

The Role of Escrow and Title Insurance Companies

Landlord and Tenant Relations

Land-Use Planning, Subdivisions, Fair Housing, and Other Public Controls

Introduction to Taxation

Single-Family Homes and Mobile Homes

A Career in Real Estate

Filters

Exam 7: Introduction to Real Estate Finance

Any loan payment twice as large as a regular payment is called a:

$300,000 loan at 8% payable $2,000 per month is what type of note?

In a trustee's sale, the proceeds of the sale were sufficient to pay the demands of the first and second trust deed holders, foreclosure costs, and provide a small cash surplus. What is the priority schedule for the distribution of the cash proceeds?

Late charges on a loan:

If a property had a net operating income of $24,000 and the investor wanted an 8% return, how much should he offer for the property?

RESPA stands for:

A negative amortized ARM means:

Which of the following regarding a Trustee's Sale is false?

Under the Trustee's Sale procedure, after a Notice of Default has been recorded, a borrower has how long to reinstate by making up past due payments, penalties, late charges, and trustee expenses?

A copy of a Mortgage Loan Disclosure Statement prepared by the broker and signed by the borrower must be retained by the broker for at least:

The loan-to-value ratio on a mortgage is defined as the:

The successful bidder at a Trustee's Sale (foreclosure) receives what type of deed?

A real estate promissory note that reads "$50,000 principal payable interest only monthly at a rate of 8%" is what type of promissory note?

A lender foreclosed on a California home that had a VA loan. The proceeds from the sale were not enough to cover the outstanding loan amount. Which of the following statements are true?

Real estate advertisements must comply with:

To settle the estate of the deceased, a probate sale is held on a mobile home. The first court bid is $30,000; the next minimum bid must be for at least:

An annual percentage rate (APR):

The Equal Credit Opportunity Act requires a lender to:

Which of the following words expresses a meaning most completely opposite to the term "alienation"?

Introduction to Real Estate

Part I: Legal Description, Method of Acquiring Title , and Deeds

Encumbrances, Liens, and Homesteads

Real Estate Agency

Real Estate Contracts and Mandated Disclosures

Practical Real Estate Mathematics

Part I: Real Estate Lenders

Real Estate Appraisal

The Role of Escrow and Title Insurance Companies

Landlord and Tenant Relations

Land-Use Planning, Subdivisions, Fair Housing, and Other Public Controls

Introduction to Taxation

Single-Family Homes and Mobile Homes

A Career in Real Estate

Filters