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National PSI Exam Prep With Correct Answers
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National PSI Exam Prep With CorrectAnswers
A nnbroker nnis nncompleting nna nnCMA nnto nndetermine nnthe nnpotential nnlisting nnprice nnof nna nnseller's nnhome.
nnWhich nnof nnthe nnfollowing nnis nnNOT nnpart nnof nnthe nnfinal nnCMA nngiven nnto nnthe nnseller?
A) nnHighest nnand nnbest nnuse nnevaluation
B) nnComparable nnsales nnanalysis
C) nnAdjustments nnto nnpast nnsales
D) nnPictures nnof nncomparables nn- nnANSWER: nn✔ nnA
Houses nnin nnthe nnlocal nnarea nnhave nnhad nnan nnincrease nnin nnsales nnprice nnand nna nndecrease nnin nndays nnon nnthe
nnmarket. nnA nnbroker nnwho nnis nnattempting nnto nndetermine nnthe nncurrent nnmarket nnvalue nnfor nna nnresidential
nnlisting nnwould nnget nnthe nnBEST nnestimate nnof nnvalue nnby nnusing
A) nna nnGRM nnas nnthe nnprimary nnconsideration nnto nndetermine nnvalue.
B) nnthe nncost nnapproach nnwith nnreproduction nnestimates.
C) nncomparables nnthat nnare nnno nnmore nnthan nnsix nnmonths nnold.
D) nncomparables nnthat nnare nnno nnmore nnthan nn12 nnmonths nnold. nn- nnANSWER: nn✔ nnC
Rental nnrates nnhave nnincreased nnby nn2% nnin nnthe nnlast nnsix nnmonths. nnWhich nnappraisal nnprinciple nnBEST
nnexplains nnthis nnrate nnincrease?
A) nnPrinciple nnof nnsubstitution
B) nnPrinciple nnof nnsupply nnand nndemand
C) nnPrinciple nnof nncontribution
D) nnPrinciple nnof nnhighest nnand nnbest nnuse nn- nnANSWER: nn✔ nnB
,The nncurrent nnmonthly nnGRM nnin nna nnneighborhood nnis nn200, nnand nnthe nnannual nnincome nnis nn$24,000.
nnWhat nnis nnthe nnestimated nnvalue nnof nna nnproperty nnin nnthis nnneighborhood?
A) nn$200,000
B) nn$240,000
C) nn$400,000
D) nn$4,800,000 nn- nnANSWER: nn✔ nnC
The nnsubject nnproperty nnhas nntwo nnbaths nnand nnone nnfireplace. nnThe nnproperty nnacross nnthe nnstreet nnsold
nnfor nn$181,000 nnand nnhas nntwo nnbaths nnand nntwo nnfireplaces. nnThe nnproperty nnbehind nnthe nnsubject nnsold
nnfor nn$175,000 nnand nnhas nntwo nnbaths nnand nnno nnfireplace. nnIn nnthe nnarea, nnbaths nnare nnworth nn$5,000 nnand
nnfireplaces nnare nnworth nn$3,000. nnWhat nnis nnthe nnsubject nnproperty nnworth?
A) nn$175,000
B) nn$177,000
C) nn$178,000
D) nn$180,000 nn- nnANSWER: nn✔ nnC
According nnto nnfederal nngovernment nnlending nnregulations, nna nnbuyer nnpurchasing nna nnhome nnmust nnhave
nnan nnappraisal nnfor nnall nnthe nnfollowing nntypes nnof nnfinancing nnEXCEPT
A) nnFHA.
B) nnVA.
C) nnloan nnsold nnto nnFNMA.
D) nnseller nncarry. nn- nnANSWER: nn✔ nnD
A nnbuyer nnchooses nna nnloan nnwith nnan nnLTV nnratio nnof nn90%, nnwhich nnrequires nnthe nnpurchase nnof nnPMI,
nninstead nnof nna nnloan nnwith nnan nn80% nnLTV, nnwhich nnwould nnnot nnrequire nnthe nninsurance. nnThe nnbuyer
nnMOST nnlikely nnmade nnthis nnchoice nnbecause
A) nnif nnthe nnbuyer nndefaults, nnPMI nnwill nnprotect nnthe nnbuyer nnby nnpaying nnoff nnthe nnfull nnloan.
,B) nnthe nnbuyer nnwill nnmake nna nnlarger nndown nnpayment nnbut nnhave nnsmaller nnmonthly nnpayments,
nnincluding nnPMI.
C) nnpaying nnPMI nnwill nnmean nnthat nnall nnmortgage nnpayments nnand nnhomeowners nnassociation nnfees nnare
nndeferred nnin nncase nnof nndefault.
D) nnthe nnbuyer nnwants nna nnsmaller nndown nnpayment, nneven nnthough nnthe nnbuyer nnwill nnhave nnto nnpay nnPMI.
nn- nnANSWER: nn✔ nnD
A nnbuyer nnis nngetting nna nnnew nnmortgage nnwith nna nn95% nnloan-to-value nnratio. nnThe nnfinal nnloan nnamount
nnthe nnlender nnwill nnlend nnthe nnbuyer nnis nndetermined nnby nnthe
A) nnlower nnof nnthe nnsales nnprice nnor nnappraised nnvalue.
B) nnhigher nnof nnthe nnsales nnprice nnor nnappraised nnvalue.
C) nnsales nnprice nnonly.
D) nnappraised nnvalue nnonly. nn- nnANSWER: nn✔ nnA
The nndifference nnbetween nnusing nna nnpartially nnamortized nnloan nnor nnan nninterest-only nnterm nnloan nnis nnthat
nnthe nnpartially nnamortized nnloan nnwould nnresult nnin
A) nnsmaller nnpayments nnand nna nnsmaller nnballoon nnpayment.
B) nnlarger nnpayments nnand nna nnsmaller nnballoon nnpayment.
C) nnsmaller nnpayments nnand nna nnlarger nnballoon nnpayment.
D) nnlarger nnpayments nnand nna nnlarger nnballoon nnpayment. nn- nnANSWER: nn✔ nnB
A nnborrower nnis nnusing nnleverage nnon nna nnnew nnhome nnloan nnat nn90% nnloan nnto nnvalue. nnThe nndisadvantage
nnof nnthis nntype nnof nnleveraging nnis nnthat
A) nnthe nnborrower nnis nnat nnhigher nnrisk nnof nndefaulting nnon nnthe nnloan.
B) nnit nnallows nnthe nnborrower nnto nnpay nnless nninterest nnover nnthe nnlife nnof nnthe nnloan.
C) nna nnlarger nndown nnpayment nnis nnrequired.
D) nnthere nnis nnrarely nnany nnrequirement nnfor nnPMI. nn- nnANSWER: nn✔ nnA
, A nnproperty nnowner nnhas nna nnlarge nnamount nnof nnequity nnin nnhis nnhome nnbut nndoes nnnot nnwant nnto nnsell nnit
nnto nngain nnaccess nnto nnhis nnmoney. nnWhat nntype nnof nnloan nncould nnthe nnowner nnuse nnto nnaccess nnthe nnequity
nnin nnhis nnhome nnwithout nnhaving nnto nnmake nnmonthly nnloan nnpayments?
A) nnContract nnfor nndeed
B) nnPurchase nnmoney nnmortgage
C) nnReverse nnmortgage
D) nnGrowth nnequity nnmortgage nn- nnANSWER: nn✔ nnC
A nnlender nnin nnfirst nnposition nnfiled nndocuments nnto nninitiate nnforeclosure nnon nna nnproperty. nnThe nnborrower
nnoffered nnto nngive nnthe nnlender nna nndeed nnin nnlieu nnof nnforeclosure. nnIf nnthe nnlender nnaccepts nnthe nndeed nnin
nnlieu, nnwhich nnof nnthe nnfollowing nnis nnTRUE?
A) nnThe nnlender nnmust nncontinue nnwith nnthe nnforeclosure.
B) nnUpon nnreceiving nnthe nndeed, nnthe nnlender nnacquires nnthe nnproperty nnfree nnand nnclear nnof nnall nnliens.
C) nnThe nnlender nnwill nntake nntitle nnsubject nnto nnany nnjunior nnliens.
D) nnThe nnlender nnneeds nnto nnobtain nna nnmortgagee's nntitle nnpolicy nnto nnclear nnall nnliens. nn- nnANSWER: nn✔ nnC
A nnseller nnhas nnagreed nnto nnact nnas nnthe nnbuyer's nnbank. nnThe nnseller nnand nnthe nnbuyer nnsigned nna nncontract
nnfor nndeed nnto nnhelp nnthe nnbuyer nnpurchase nnthe nnseller's nnhome. nnWhen nnwill nnthe nnbuyer nnreceive
nnpossession nnand nntitle?
A) nnFull nnrights nnof nnpossession nnand nnfull nnlegal nntitle nnare nnreceived nnupon nnmaking nnthe nnfinal nnloan
nnpayment.
B) nnPartial nnlegal nntitle nnand nnfull nnrights nnof nnpossession nnare nnreceived nnat nnclosing.
C) nnTitle nnis nnreceived nnas nnagreed nnto nnin nnthe nncontract, nnand nnpossession nnis nnreceived nnupon nnmaking
nnthe nnfinal nnloan nnpayment.
D) nnPossession nnis nnreceived nnas nnagreed nnto nnin nnthe nncontract, nnand nntitle nnis nnreceived nnupon nnmaking nnthe
nnfinal nnloan nnpayment. nn- nnANSWER: nn✔ nnD
A nncontract nnfor nnthe nnpurchase nnof nnreal nnproperty nnmight nnbe nnterminated nnby nnall nnof nnthe nnfollowing
nnEXCEPT
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