REAL 4000 UGA Exam Questions With
Correct Answers
What does the value of a property mortgage depend on - answer1. Magnitude of expected
cash flows
2. Timing of expected cash flows
3. Riskiness of expected cash flows
The possibility that the actual outcome will vary from what was expected when...
What does the value of a property mortgage depend on - answer✔✔1. Magnitude of expected
cash flows
2. Timing of expected cash flows
3. Riskiness of expected cash flows
The possibility that the actual outcome will vary from what was expected when the asset was
purchased. - answer✔✔Risk
fixed amount of money paid or received at the end of every period - answer✔✔Ordinary annuity
future cash inflow or outflow occurring only once - answer✔✔lump sum payment
What are the four time Value of money operations - answer✔✔Compounding Operations
1. Future value of a lump sum
2. Future value of an annuity
Discounting Operation
1. Present value of a lump sum
2.Present value of an annuity
What affects value - answer✔✔required yield
What is the highest degree of control you can have - answer✔✔Purchase price
loans for which the interest rate does not change over the life of the loan - answer✔✔Fixed rate
more common when rates in the market are not stable as they protect lender from interest rate
risk - answer✔✔adjustable rate
Why would you take an adjustable rate? - answer✔✔it allows the borrower to secure lower rates
for the short term
Two elements of a mortgage loan - answer✔✔1. The note
4.Amortization - answer✔✔The Note
A pledge of property as a security for the note. Formal conveyance of rights to disposition -
answer✔✔The mortgage (DOT)
Various arrangements for fixed-rate loan - answer✔✔1. Fully Amortized
2. Partially Amortized
3. Interest only
4. Negative Amortization
Fully amortized - answer✔✔Most Residential Consumer Real Estate Loans
Partially amortized - answer✔✔1. Most commercial Real Estate loans
2. Term for amortization
3. Term to maturity (paid off before amortization term)
Interest only (NON AMORTIZING sometimes called a bullet loan) - answer✔✔1. balloon
payment at tend UNLESS converting to amort loan
2. Mostly commercial but sometimes residential loans
Negative amortization ( principal rising, not falling) - answer✔✔purposeful in reverse mortgage
The Note: Prepayment - answer✔✔
Right of prepayment unless explicitly prohibited - answer✔✔Modern statutory case
Loans with FULL right of payment - answer✔✔1. All conforming and FHA/VA loans
2. Home equity credit lines
3. Most some non conforming loans
- subprime home loans (less than 669 credit score)
-Jumbo home loans (647200 and above for all GA countries)
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 Thebright. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.49. You're not tied to anything after your purchase.
