CDM TEST 2023 REAL
EXAM 1O0 QUESTIONS
AND CORRECT
ANSWERS|AGRADE(VE
RIFIED ANSWERS)
,If advertising alone, which of the following would violate truth in
lending (TILA0 laws?
A. Assumable loan
B. FHA financing available
C. No down payment required
D. Easy financing terms - ANSWER>>>C. No Down Payment
Required
Like points, discount points are one-time charges equal to one percent
of the loan amount for each point charged.
A borrower takes out a mortgages loan that requires monthly
payments of $875.70 for 20 years and a final payment of $24,095.
This is what type of loan?
A. Wraparound
B. Balloon
C. Variable
D. Accelerated - ANSWER>>>B. Balloon
A balloon payment mortgage is a mortgage which does not fully
amortize over the term of the note, thus leaving a balance due at
maturity. The final payment is called a balloon payment because of its
large size. Balloon, payment mortgages are more common in
commercial real estate than in residential real estates.
Leanders use a "Debt-income ratio" as a...
A. Method of setting escrow fees
, B. Loan qualifying tool
C. Government loan ratio
D. A way of calculating your net worth - ANSWER>>>B. Loan
qualifying tool
Debt to-income ratio is used by lenders as a loan-qualifying tool. It is a
method of calculating how much debt is owed in relation to how much
income is coming in.
when the deed in which in which you take title to a property contains
the following clause "subject to the existing loan",
A. The lender is guaranteed that you alone will pay off the loan.
B. You are in danger of losing the property if the seller does not make
the payments on the underlying loan.
C. The seller is permanently relieved of the liability.
D. You agreed to assume the loan and make the payments directly to
the lender. - ANSWER>>>B. You are in danger of losing the property
if the seller does not make the payments on the underlying loan.
"Buying subject to" means buying a home subject to the existing
mortgage. It means the seller is not paying off the existing mortgage
and the buyer is taking over the payments. The unpaid balance of the
existing mortgage is then calculated as part of the buyers purchase
price, but the seller remains responsible for paying off the existing
loan because its still in their name.
Which of the following statements about housing loans with federal
governments support is false?
A. Federal Veterans Affairs loan guarantees may be used for
condominium financing.
B. FHA may insure mortgages for either apartment house projects or
single family residences
C. The federal government insures the lending agency against losses.
D. The federal government supplies funds to the lending agency. -
ANSWER>>>D. The federal government supports many aspects of
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