Exam (elaborations)
Real Estate Financing Practice: Questions & Answers
- Course
- Institution
Real Estate Financing Practice: Questions & Answers
[Show more]
Seller
Follow
LeCrae
Reviews received
Content preview
Real Estate Financing Practice:Questions & Answers
A Correct Ans - 1. K has just purchased his first home
with a fixed-rate loan. The interest he
will pay over the life of the loan is
a. simple interest.
b. compound interest.
c. prepaid interest.
d. discounted interest.
B Correct Ans - 2. The amount of a loan expressed as a
percentage of the value of the real estate offered as collateral is the
a. amortization ratio.
b. loan-to-value ratio.
c. debt-to-equity ratio.
d. capital-use ratio.
D Correct Ans - 3. The purpose of the Real Estate
Settlement Procedures Act (RESPA)
is to
a. see that buyers do not borrow
more money than they can repay.
b. make real estate brokers more
responsive to the needs of
buyers.
c. help sellers know how much
money is required to purchase
the property.
d. see that buyers and sellers know
all of their settlement costs.
D Correct Ans - 4. If the quarterly interest at 10-1/2
percent is $3,150, the principal
, amount of the loan is
a. $30,000.
b. $60,000.
c. $90,000.
d. $120,000.
B Correct Ans - 5. Fannie Mae
a. makes FHA loans.
b. buys FHA loans.
c. services FHA loans.
d. insures FHA loans.
C Correct Ans - 6. The grantor becomes the lessee and
the grantee becomes the lessor under which of the following financing
arrangements?
a. Partial sale
b. Wraparound mortgage
c. Sale and leaseback
d. Assumption of mortgage
A Correct Ans - 7. Which of the following pairs of terms is considered
synonymous?
a. Interim financing and
construction loan
b. Construction loan and
pass-through loan
c. Pass-through loan and take-out
loan
d. Take-out loan and construction
loan
B Correct Ans - 8. The type of real estate loan that allows the lender to
increase the outstanding
balance of a loan up to the original
sum in the note while advancing
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller LeCrae. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
62890 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now