Question 1

Choose the most appropriate answer for each.
-refers to a monthly loan payment that includes principal, interest, property taxes, and property insurance

Accepted Answer

A) Amortized loan 
B) Amortization tables 
C) Balloon loan 
D) Budget mortgage 
E) Conventional loan
F)Discount point
G)Equity
H)FHA
I)Impound account
J)Loan balance table
K)Loan origination fee
L)Loan-to-value ratio
M)Maturity
N)Partially amortized loan
O)PITI payment
P)PMI
Q)Point
R)Principal
S)Term loan
T)UFMIP 
A) Amortized loan 
B) Amortization tables 
C) Balloon loan 
D) Budget mortgage 
E) Conventional loan
F)Discount point
G)Equity
H)FHA
I)Impound account
J)Loan balance table
K)Loan origination fee
L)Loan-to-value ratio
M)Maturity
N)Partially amortized loan
O)PITI payment
P)PMI
Q)Point
R)Principal
S)Term loan
T)UFMIP

Question 2

A certificate of reasonable value is issued by a VA staff appraiser.

Accepted Answer

A) True 
 B)False

Question 3

A(n)____________________ loan is any loan that has a final payment that is larger than any of the previous payments on the loan.

Accepted Answer

The answer of A(n)____________________ loan is any loan that has...

Question 4

After December 1, 1986, the FHA would no longer allow a ____________________ assumption of an FHA insured loan.

Accepted Answer

The answer of After December 1, 1986, the FHA would...

Question 5

In order to ensure that the mortgagor has enough money to pay yearly property taxes and hazard insurance, the lender may insist on a budget mortgage.

Accepted Answer

A) True 
 B)False

Question 6

The value of the property above the total liens or mortgages is called

Accepted Answer

A)  the equity. 
B)  due on sale. 
C)  the assessment. 
D)  the loan-to-value ratio. 
A)  the equity. 
B)  due on sale. 
C)  the assessment. 
D)  the loan-to-value ratio.

Question 7

A mortgage lender will lend based on a proportion of the appraisal or sale price, whichever is less. This is called the loan-to-value ratio.

Accepted Answer

A) True 
 B)False

Question 8

Which government loan program will make direct loans if a qualified borrower cannot find a lender?

Accepted Answer

A)  FHA 
B)  VA 
C)  CRV 
D)  HUD 
A)  FHA 
B)  VA 
C)  CRV 
D)  HUD

Question 9

Choose the most appropriate answer for each.
-shows the principal still owing during the life of a loan

Accepted Answer

A) Amortized loan 
B) Amortization tables 
C) Balloon loan 
D) Budget mortgage 
E) Conventional loan
F)Discount point
G)Equity
H)FHA
I)Impound account
J)Loan balance table
K)Loan origination fee
L)Loan-to-value ratio
M)Maturity
N)Partially amortized loan
O)PITI payment
P)PMI
Q)Point
R)Principal
S)Term loan
T)UFMIP 
A) Amortized loan 
B) Amortization tables 
C) Balloon loan 
D) Budget mortgage 
E) Conventional loan
F)Discount point
G)Equity
H)FHA
I)Impound account
J)Loan balance table
K)Loan origination fee
L)Loan-to-value ratio
M)Maturity
N)Partially amortized loan
O)PITI payment
P)PMI
Q)Point
R)Principal
S)Term loan
T)UFMIP

Question 10

The role of the FHA in residential mortgage lending is

Accepted Answer

A)  guaranteeing the loan. 
B)  insuring the loan. 
C)  loaning the money. 
D)  as a secondary lender. 
A)  guaranteeing the loan. 
B)  insuring the loan. 
C)  loaning the money. 
D)  as a secondary lender.

Question 11

A conventional mortgage is neither insured nor guaranteed by the government.

Accepted Answer

A) True 
 B)False

Question 12

Money for tax and insurance payments that accompanies principal and interest could be placed in any of the following accounts EXCEPT

Accepted Answer

A)  a trust account. 
B)  an escrow account. 
C)  a remaining balance account. 
D)  a reserve account. 
A)  a trust account. 
B)  an escrow account. 
C)  a remaining balance account. 
D)  a reserve account.

Question 13

A final loan payment that is larger than previous payments is called a

Accepted Answer

A)  balloon payment. 
B)  budget payment. 
C)  terminal payment. 
D)  graduated payment. 
A)  balloon payment. 
B)  budget payment. 
C)  terminal payment. 
D)  graduated payment.

Question 14

Usually, the borrower of a FHA loan is also responsible for the

Accepted Answer

A)  mortgage insurance premium. 
B)  funding fees. 
C)  private mortgage insurance. 
D)  estoppel certificate. 
A)  mortgage insurance premium. 
B)  funding fees. 
C)  private mortgage insurance. 
D)  estoppel certificate.

Question 15

Choose the most appropriate answer for each.
-the market value of a property less the debt against it

Accepted Answer

A) Amortized loan 
B) Amortization tables 
C) Balloon loan 
D) Budget mortgage 
E) Conventional loan
F)Discount point
G)Equity
H)FHA
I)Impound account
J)Loan balance table
K)Loan origination fee
L)Loan-to-value ratio
M)Maturity
N)Partially amortized loan
O)PITI payment
P)PMI
Q)Point
R)Principal
S)Term loan
T)UFMIP 
A) Amortized loan 
B) Amortization tables 
C) Balloon loan 
D) Budget mortgage 
E) Conventional loan
F)Discount point
G)Equity
H)FHA
I)Impound account
J)Loan balance table
K)Loan origination fee
L)Loan-to-value ratio
M)Maturity
N)Partially amortized loan
O)PITI payment
P)PMI
Q)Point
R)Principal
S)Term loan
T)UFMIP

Question 16

The word point means 1% of the _________________________.

Accepted Answer

The answer of The word point means 1% of the...

Question 17

Money for tax and insurance payments that accompanies principal and interest could be placed in an escrow account or trust account.

Accepted Answer

A) True 
 B)False

Question 18

Discount points are more likely to be used during periods of

Accepted Answer

A)  tight money. 
B)  available money. 
C)  cash sales. 
D)  seller financed sales. 
A)  tight money. 
B)  available money. 
C)  cash sales. 
D)  seller financed sales.

Question 19

If a borrower paid $3,550 in points on a loan of $95,000 how many points were charged?

Accepted Answer

A)  .003 points 
B)  .3 points 
C)  3 points 
D)  3.7 points 
A)  .003 points 
B)  .3 points 
C)  3 points 
D)  3.7 points

Question 20

Choose the most appropriate answer for each.
-a private mortgage insurance source to insure lenders against foreclosure loss

Accepted Answer

A) Amortized loan 
B) Amortization tables 
C) Balloon loan 
D) Budget mortgage 
E) Conventional loan
F)Discount point
G)Equity
H)FHA
I)Impound account
J)Loan balance table
K)Loan origination fee
L)Loan-to-value ratio
M)Maturity
N)Partially amortized loan
O)PITI payment
P)PMI
Q)Point
R)Principal
S)Term loan
T)UFMIP 
A) Amortized loan 
B) Amortization tables 
C) Balloon loan 
D) Budget mortgage 
E) Conventional loan
F)Discount point
G)Equity
H)FHA
I)Impound account
J)Loan balance table
K)Loan origination fee
L)Loan-to-value ratio
M)Maturity
N)Partially amortized loan
O)PITI payment
P)PMI
Q)Point
R)Principal
S)Term loan
T)UFMIP

Exam 10: Lending Practices

Choose the most appropriate answer for each. -refers to a monthly loan payment that includes principal, interest, property taxes, and property insurance

A certificate of reasonable value is issued by a VA staff appraiser.

A(n)____________________ loan is any loan that has a final payment that is larger than any of the previous payments on the loan.

After December 1, 1986, the FHA would no longer allow a ____________________ assumption of an FHA insured loan.

In order to ensure that the mortgagor has enough money to pay yearly property taxes and hazard insurance, the lender may insist on a budget mortgage.

The value of the property above the total liens or mortgages is called

A mortgage lender will lend based on a proportion of the appraisal or sale price, whichever is less. This is called the loan-to-value ratio.

Which government loan program will make direct loans if a qualified borrower cannot find a lender?

Choose the most appropriate answer for each. -shows the principal still owing during the life of a loan

The role of the FHA in residential mortgage lending is

A conventional mortgage is neither insured nor guaranteed by the government.

Money for tax and insurance payments that accompanies principal and interest could be placed in any of the following accounts EXCEPT

A final loan payment that is larger than previous payments is called a

Usually, the borrower of a FHA loan is also responsible for the

Choose the most appropriate answer for each. -the market value of a property less the debt against it

The word point means 1% of the _________________________.

Money for tax and insurance payments that accompanies principal and interest could be placed in an escrow account or trust account.

Discount points are more likely to be used during periods of

If a borrower paid $3,550 in points on a loan of $95,000 how many points were charged?

Choose the most appropriate answer for each. -a private mortgage insurance source to insure lenders against foreclosure loss

Nature and Description of Real Estate

Rights and Interests in Land

Forms of Ownership

Transferring Title

Recordation Abstracts and Title Insurance

Contract Law

Real Estate Sales Contracts

Mortgage and Note

Deed of Trust

The Loan and the Consumer

Sources of Financing

Types of Financing

Taxes and Assessments

Title Closing and Escrow

Real Estate Leases

Real Estate Appraisal

Licensing Laws and Professional Affiliation

The Principal-Broker Relationship: Employment

The Principal-Broker Relationship: Agency

Fair Housing, Ada, Equal Credit, and Community Reinvestment

Condominiums, Cooperatives, Puds, and Timeshares

Property Insurance

Land-Use Control

Real Estate and the Economy

Investing in Real Estate

Filters