The Complete Guide to Passing Your Real Estate Sales License Exam On the First Attempt by Ken Lambert

Author:Ken Lambert
Language: eng
Format: epub
Publisher: Atlantic Publishing
Published: 2013-07-28T00:00:00+00:00

National Practice Exam #2

1. Jeff Kosarka has $86,576 left on his 8.5 percent mortgage. His monthly payment is set at $852.56 for principal and interest (he pays his own taxes and insurance). How much of his next payment will go toward the loan interest?

A. $116.76

B. $239.31

C. $735.80

D. $613.25

2. Theresa Henchey is buying a new home for $200,000. She makes a $47,000 down payment and finances the balance with a 7.5 percent 30-year conventional loan. The factor for repayment is $7.00 per thousand. After making the first payment, what is the remaining balance on Theresa’s loan?

A. $152,885.25

B. $152,808.75

C. $152,635.25

D. $153,135.25

3. Which of the following instruments would contain the loan amount, term of the loan, interest rate, and monthly payments?

A. Lease

B. Mortgage

C. Deed

D. None of the above

4. A developer received a loan that covers numerous parcels of real estate and provides for the release of the mortgage lien on each parcel as it is sold and an agreed-on amount of the original loan is paid. This type of loan is called a

A. package loan.

B. wraparound loan.

C. purchase-money loan.

D. blanket loan.

5. In a loan execution, proper signatures on the promissory note create

A. the lien on the property.

B. the indebtedness of the borrower.

C. the transfer of ownership to a trustee.

D. recording of the lien on the land records.

6. When negative amortization occurs, the

A. loan balance increases.

B. term of the loan increases.

C. monthly payment increases.

D. term of the loan decreases.

7. The borrower conveys legal title to the property to a disinterested third party for safekeeping to obtain a loan. In this situation, the document required is a

A. general warranty deed.

B. involuntary conveyance.

C. trust deed.

D. mortgage.

8. A borrower obtains a $100,000 mortgage at 7.5 percent. If the monthly payment of $902.77 is credited first to interest and then to the principal, what will the balance of the principal be after the borrower makes the first payment?

A. $99,772.77

B. $99,375.23

C. $99,097.77

D. $99,722.23

9. A collateral property is sold. It is then determined that the net proceeds did not clear the debt. In this situation, the borrower will likely receive a

A. notice of foreclosure.

B. letter of defeasance.

C. certificate of liability.

D. notice of deficiency judgment.

10. One of the newer developments in mortgage lending is the use of

A. fixed-rate 30-year mortgages.

B. adjustable-rate mortgages.

C. wraparound mortgages.

D. computerized loan origination.

11. How may FHA insured and VA guaranteed loans be assumed?

A. On payment of an assumption fee to the seller

B. Only if the second borrower is related to the original borrower

C. Either freely or on creditworthiness of the buyer, depending on the date of the loan

D. Under no circumstances

12. A tenant paid rent of $500, due on the first of the month, and a $500 security deposit. The property then is sold on September 15. How much money will the sellers owe the buyer at closing?

A. $500

B. $750

C. $1,000

D. $1,500

13. A borrower notices that he is paying MIP on his HUD Settlement Statement. What kind of loan does he have?

A. 80 percent LTV conventional loan

B. VA loan

C. FHA 203(b) loan

D. Graduated payment loan

14. Using real property, while retaining the property itself as collateral to secure a loan is called

A.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.