Barney Fletcher Exam 4 Questions and Answers which BEST describes the principle that a home maintains its highest value in a neighborhood with similar homes and similar type housing? A. substitution B. conformity C. highest and best use D. competition - Answer-B. conformity If you took projected fu...
1. which BEST describes the principle that a home maintains its highest
value in a neighborhood with similar homes and similar type housing?
A. substitution
B. conformity
C. highest and best use
D. competition: B. conformity
2. If you took projected future costs from projected future income, you
would arrive at:
A. capitalization rate
B. projected net income
C. projected debt service
D. projected debt coverage: B. projected net income
3. A deed would be presumed to have been delivered upon the happening of
which of the following events?
A. it was subrogated
B. it was notarized
C. it was recorded
D. it was signed: C. it was recorded
4. A farmer leased a property on an annual basis whereby the farmer or the
owner could terminate the lease by giving the other party 90 days notice.
One half of the crop value would be the annual rent. This type of lease would
best be described as a:
A. tenancy in common
B. periodic estate
C. tenancy for years
D. tenancy at will: B. periodic estate
5. In times of a tight money market where the money supply is short, the
secondary mortgage market helps first time home buyers by:
A. lowering interest rates
B. providing liquidity to primary lenders
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, Barney Fletcher Exam Questions 4
C. raising required ratios on qualifying
D. insisting on larger mortgage insurance premiums: B. providing liquidity to
primary lenders
6. Which of the following organizations is the largest purchaser of
mortgages in the secondary mortgage market?
A. Federal National Mortgage Association (FNMA)
B. Government National Mortgage Association (GNMA)
C. Federal Home Loan Mortgage Corporation (FHLMC)
D. Farmer's Home Administration (FMHA): A. Federal National Mortgage
Association (FNMA)
7. An out of town buyer wanted to buy a home as soon as possible and did
not want to pay a loan origination fee. Which type loan would be best?
A. conventional loan
B. FHA loan
C. assumed loan
D. PMI loan: C. assumed loan
8. A loan for which of the following would NOT fall under Regulation Z?
A. residential home
B. a loan involving discount points
C. shoe store in a commercial shopping strip
D. a duplex: B. a loan involving discount points
9. An 18 year straight note had a total of $27,000 in interest over the term.
The interest rate was 10% and loan was 75% of the sales price. What was the
sales price?
A. $15,000
B. $20,000
C. $23,850
D. $28,000: B. $20,000
$27,000 divided by 18 = $1,500 interest per year. $1,500 divided by 10% =
$15,000 loan divided by 75% = $20,000 price
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