Real Estate U Texas Real Estate Finance(6) Exam Questions And Answers All verified By An Expert
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Module
Real Estate U Texas Real Estate Finance
Institution
Real Estate U Texas Real Estate Finance
Real Estate U Texas Real Estate Finance(6) Exam Questions And Answers All verified By An Expert
An acceleration clause is included in which of the following...?
The mortgage
Both the promissory note and mortgage
The promissory note
The lien - ANS The promissory note?
Collateral - - ANS...
An acceleration clause is included in which of the following...?
The mortgage
Both the promissory note and mortgage
K
The promissory note
The lien - ANS The promissory note?
C
Collateral - - ANS Marketable real or personal property which a borrower pledges as security
for a loan. In mortgage transactions, specific land is the collateral.
LO
Promissory Note - - ANS Following a loan commitment from the lender, the borrower signs a
note, promising to repay the loan under stipulated terms. The promissory note establishes
personal liability for its payment. The evidence of the debt.
Default - - ANS Failure to fulfill a duty or promise or to discharge an obligation; omission or
YC
failure to perform any act.
Foreclosure - - ANS Procedure whereby property pledged for a debt is sold to pay the debt in
event of default in payments or terms.
D
Hypothecate - - ANS To pledge a thing as security without the necessity of giving up
possession of it.
U
Equitable Title - - ANS The right to obtain full ownership of property.
Legal Title - - ANS The actual ownership of property.
ST
Leverage - - ANS The use of debt financing of an investment to maximize the return per dollar
of equity invested.
Real or personal property which a borrower pledges as security for a loan is known as...?
Accessory
Chattel
Collateral
Substantial property - ANS Collateral
Which of the following serves as evidence of a debt...?
Promissory note
,Collateral
Title
Credit - ANS Promissory note
The failure to fulfill a duty or promise is known as...?
Execution
Hypothecate
Default
Performance - ANS Default
K
A procedure whereby property pledged for a debt is sold to pay the debt in event of default in
payments or terms is known as...?
Police power
C
Foreclosure
Condemnation
Hypothecate - ANS Foreclosure
Record
LO
To pledge a thing as security without the necessity of giving up possession of it means to...?
Acknowledge
Notarize
YC
Hypothecate - ANS Hypothecate
James needed to obtain financing to purchase a new house. What will most likely be used as
collateral for James' loan...?
The house James purchased
James' car
D
James' bank account
James' old house - ANS The house James purchased
U
The use of debt financing of an investment to maximize the return per dollar of equity invested is
known as...?
Collateral
ST
Hypothecate
Leverage
Pledge - ANS Leverage
Primary Mortgage Market - - ANS The marketplace whereby loans are originated.
Secondary Mortgage Market - - ANS The marketplace whereby the loans that were originated
in the primary mortgage market are bought and sold.
Interest Rate - - ANS The percentage of a sum of money charged for its use. Rent or charge
paid for use of money, expressed as a percentage per month or year of the sum borrowed.
,Two or more consecutive quarters of negative growth is known as a...?
Regression
Rebound
Recovery
Recession - ANS Recession
A short term real estate cycle is...?
1-2 years
3-5 years
K
5-7 years
10-12 years - ANS 3-5 years
C
Which of the following may impact real estate cycles...?
Social attitudes
Taxes
LO
Property values
All of the above - ANS All of the above
If demand is high and supply is low, real estate prices will...?
Increase
YC
Decrease
Remain the same
Real estate prices are not related to supply and demand - ANS Increase
The actual ownership of property is known as...?
ALegal title
D
BEquitable title
CSecure title
DRecorded title - ANS Legal title
U
A borrower is said to be in default of their loan if they do not abide by the terms of the...?
APromissory note
ST
BMortgage
CDeed
DPurchase contract - ANS Promissory note
When using leverage to help purchase a residential property, what is typically used to cover the
remainder of the purchase price...?
ACash down payment
BSeller financing
COptions money
DCredit cards - ANS Cash down payment
, Which of the following may be a lender in a real estate transaction...?
AAll of the above
BFamily and friends
CInsurance company
DCommercial bank - ANS All of the above
What is the minimum down payment for an FHA insured loan...?
A3.5 Percent (%)
B20 Percent (%)
C50 Percent (%)
K
D10 Percent (%) - ANS 3.5 Percent (%)
When a borrower hypothecates their property, the lender will maintain...?
C
AEquitable title
BLegal title
CInterim title
LO
DSecure title - ANS Equitable title
A long term real estate cycle is typically...?
A10-15 years
B3-5 years
YC
C1-2 years
D5-7 years - ANS 10-15 years
Which of the following is an example of using leverage in a real estate transaction...?
AObtaining financing to purchase a property
BPurchasing a property using all cash
D
CInheriting a property from a family member
DAll of the above - ANS Obtaining financing to purchase a property
U
Which of the following participates in the secondary mortgage market...?
AAll of the above
BFannie Mae
ST
CFreddie Mac
DGinnie Mae - ANS All of the above
The secondary mortgage market offers ..............for the primary mortgage market?
ALiquidity
BSupply
CBuyers
DSupport - ANS Liquidity
The more money an individual has, the more purchasing power they have...?
T (True)
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