Real Estate Licensing Exam | 700+ Questions and 100% Correct Answers
3 views 0 purchase
Course
Real Estate
Institution
Real Estate
hich type of payment is made at the end of the term for a balloon mortgage? -
Lump sum
Noah owns an LLC that buys and sells stocks on the NASDAQ 100. He needs some
additional financing. To which type of lending institution might he prefer to go? -
Investment Group
Victor buys a property from Y...
Real Estate Licensing Exam | 700+ Questions and
100% Correct Answers
Charles is selling his property to Seth. Charles is financing part of the transaction for
Seth, who will make payments to Charles while Charles retains the property title. What's
this an example of? - ✔✔Land Contract-With a land contract, the seller agrees to
provide credit to the buyer for a portion (or sometimes all) of the funds required to
close the transaction. The buyer makes payments directly to the seller.
Which entity services rural development loans? - ✔✔FSA-Farm Service Agency
Stacey's lengthy military service makes her uniquely eligible for a(n) ________. -
✔✔VA Loan-Individuals eligible for VA loans include military members who have
served 181 days on active duty or three months during war time.
For farmers and others who live in rural communities, a ______ loan may be available.
One benefit of these loans is the option for a longer payback period. - ✔✔Rural
Development
Chris is in the process of purchasing a property with 20 acres of farmland in a rural area
of the state. Assuming his income meets the criteria of the program, what type of loan
may Chris find the most desirable? - ✔✔Rural Development Loan
The ______ can offer direct loans to farmers and ranchers. The loans are funded by
congressional appropriation. - ✔✔USDA Farm Service Agency-Direct loans are
available to farmers and ranchers through the USDA Farm Service Agency, funded by
congressional appropriation.
,Sgt. Johnson is an active member of the Marines. He's been serving for 10 years. He
wants to buy a home with no money down. What loan option seems like the best fit? -
✔✔VA Loan-While the sergeant could consider any loan, the only loan option with a
zero down payment is a VA loan.
What are the main benefits to veterans of the VA-guaranteed loan program? - ✔✔No
down payment, no mortgage insurance, and no prepayment penalty
Several actions take place on the secondary mortgage market. Which of these is a
common activity? - ✔✔Packaging loans into mortgage-backed securities
Which type of payment is made at the end of the term for a balloon mortgage? -
✔✔Lump sum
Noah owns an LLC that buys and sells stocks on the NASDAQ 100. He needs some
additional financing. To which type of lending institution might he prefer to go? -
✔✔Investment Group
Victor buys a property from Yolanda for $200,000. Using a land contract, Victor agrees
to pay Yolanda in monthly installments of $4,000 over the course of 50 months. Until
Victor pays Yolanda the $200,000, who retains the title? - ✔✔Yolanda
Jimmy owns a vacant piece of land. He plans to build a home on the land and then sell it.
What type of loan is he most likely to acquire to finance this project? -
✔✔Construction
Lauren obtained a loan that's insured and that only required a down payment of 3.5%.
Which of these is most likely the type of loan Lauren has? - ✔✔FHA-With FHA loans,
the Federal Housing Authority insures the loan for the lender, because the down
payment amount can be so low—as little as 3.5%—with an FHA-insured loan.
,To which of the following borrowers might a lender be most likely to recommend an
FHA loan? - ✔✔A young couple with only a few thousand dollars saved for a down
payment and relatively low credit scores-Loans insured by the Federal Housing
Administration require a 3.5% down payment and permit buyers with lower credit
scores to qualify for a loan.
Which of these is a member of the primary mortgage market? - ✔✔CitiBank (National
bank working directly with customers)
What type of arrangement allows the buyer to retain title to the property but places a
security interest in the property on behalf of the seller? - ✔✔Purchase Money
Mortgage
Rachel loves convenience. As you can imagine, she was thrilled when she was able to
finance her mortgage through the same institution where she deposits her payroll
checks. Which of these most likely financed Rachel's mortgage? - ✔✔Savings and
Loan
Jason purchased his dream home six months ago. After Jason received an inheritance
from his uncle, he decided he would pay off his mortgage. What might he consider
before doing this? - ✔✔Whether he will incur a prepayment penalty
Which of the following is true regarding prepayment penalties? - ✔✔Lenders must
disclose up front if they reserve the right to charge a prepayment penalty, and under
what conditions they apply.
Shirley's lender discharged the mortgage lien on Shirley's property after processing her
final payment. Which clause requires the lender to take this action? - ✔✔Defeasance
, A mortgage is a legally binding document that creates a lien on a piece of property and
gives the lender the right to foreclose on the property if the borrower defaults. Who or
what entity is considered the mortgagee? - ✔✔Lender
Alyssa's mortgage loan is secured by the note and the mortgage. Which of the following
is true if she lives in a lien theory state? - ✔✔She holds title to the property, and the
mortgage becomes a lien on the property.
Who or what entity has legal title to a financed property in a lien theory state? -
✔✔The borrower
Ed is a homebuyer reviewing the Loan Estimate he received from a lender. He notices
the loan terms include a prepayment penalty. Because he's a savvy consumer, he
_______. - ✔✔Asks the lender if there are other options available that would not
involve a prepayment penalty
Janice is selling her property, and Tim wants to assume her loan. If a due-on-sale clause
exists in Janice's mortgage, ______. - ✔✔The entire loan balance may be due at once,
and Tim won't be able to assume it
When a mortgage is used as a security instrument, who holds the mortgage and the
promissory note? - ✔✔The lender holds the mortgage and the note.
While Martha's paying off her loan, her lender is holding on to something that includes
her name, property address, the interest rate on her loan, what the late charge amount
would be, and the amount and term of the loan. When her loan is paid off, the lender
returns it to Mary, marked paid in full. What is this item? - ✔✔A promissory note
Which of the following is the name of a penalty lenders charge when borrowers repay
their loans earlier than expected? - ✔✔Prepayment Penalty
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 Examsplug. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.49. You're not tied to anything after your purchase.
