Texas Real Estate Finance Exam Latest Update
2024-2025 200+ Questions and Verified Correct
Answers Guaranteed A+
$1352.47 - CORRECT ANSWER: The sales price is $325,000 with a loan-to-value of
85%. The interest rate is 5 7/8%. The term is 30 years. What is the amount of interest
the buyer will pay the first month of the loan? Use an actual year.
A) $1592.50
B) $1565.42
C) $1330.60
D) $1352.47
$2548.87 - CORRECT ANSWER: Calculate the montly payment on an 80% loan with a
sales price of $350,000 for 30 year term at 6.75%. The annual taxes are $7300 and the
annual insurance premium is $1480. The loan factor is 6.49 per $1000.
A) $2548.87
B) $3003.17
C) $2668.18
D) $2945.20
$4250.00 - CORRECT ANSWER: The Smiths have long-term debts of $365 and you
have estimated their monthly mortgage payment to be $1250 with lender ratios of
33%/38%. How much income must they earn monthly to qualify?
A) $4250.00
B) $2984.85
C) $2592.10
D) $4151.52
$4560 - CORRECT ANSWER: The lender is charging 2 discount points on a home that
is priced at $285,000. The buyers are obtaining 80% financing. What would be the
dollar amount of the discount?
A) $4625
B) $925
C) $4560
D) $2700
2 mths insuance reserve; 3 mths tax reserve; 2 mths PMI reserve - CORRECT
ANSWER: Prepaids are items that are typically collected at closing: ______ ___ ____
___; ____ ____ ____ ____; ___ ____ ____ ____
, 3 - CORRECT ANSWER: Regulation Z is the Truth in Lending Act (TILA). it provides a
__ day right or rescission. The purchaser may rescind the transaction within _ days after
the date of consummation of the transaction.
3a + 3b = 3c - CORRECT ANSWER: In the contract remember __ + ____ must always
equal ___! No exceptions!!
80% - CORRECT ANSWER: Calculate the loan-to-value if a borrower is purchasing a
house for $125,000 and is putting down $25,000 as a down payment.
A) 100%
B) 80%
C) 85%
D) 90%
80% - CORRECT ANSWER: PMI is generally required on a conventional loan with a
loan-to-value ratio in excess of:
A) 75%
B) 80%
C) 70%
D) Determined by the lender
90 - CORRECT ANSWER: To qualify for the Texas Veterans Land Fund, the Texas
Veteran must have served ___ consecutive days active duty since September 16, 1940
and be a resident of Texas at the time of entry into the service, or at least two
consecutive years prior to filling out the application.
A single number used by the lender to predict the likely future perfomance of a person's
loan - CORRECT ANSWER: What is credit scoring?
A) Underlying items of importance on your credit report
B) The federal legislation that prevents discrimination regarding credit applicants
C) The score you receive when you open a revolving charge card
D) A single number used by the lender to predict the likely future perfomance of a
person's loan
AAA Credit - CORRECT ANSWER: Lenders will look at all of the following credit
reporting agencies for the credit rating of the buyer EXCEPT:
A) Equifax
B) Trans Union
C) Experian
D) AAA Credit
, acceleration clause - CORRECT ANSWER: _______ _______: is the common
provision of a mortgage providing the holder with the right to demand that the entire
outstanding balance is immediately due and payable in the event of a default.
Alienation clause - CORRECT ANSWER: The clause in a mortgage that stipulates that
when the property is sold, the entire blanace of the loan is due and payable (and not
able to be assumed) is the ______ clause.
A) Deprecation clause
B) Amortization clause
C) Alienation clause
D) note
alienation clause - CORRECT ANSWER: The opposite of an assumption clause would
be an _____ ___. The _____ _____, also known as the "Due on Sale" clause, states
that if the property is sold, the entire balance of the loan must be paid off not allowing
the loan to be assumed.
All of the above (The term, The late charges, The promise to pay) - CORRECT
ANSWER: Of the following items, which is (are) included in the note?
A) The term
B) The late charges
C) The promise to pay
D) All of the above
Amortization - CORRECT ANSWER: _______: the systematic and continuous
repayment of an obligation through periodic installments until the debt has been repaid
in full.
Amortization - CORRECT ANSWER: _____: the total payment is the same each month
but the allocation of interest is different each month.
Annual Percentage Rate (APR) - CORRECT ANSWER: ____ ___ ___ (___) is the
actual interest rate the borrower pays when all the costs of obtaining credit are included
approval of the applicant, approval or the property, approval of the final closing
statement known as the HUD-1 - CORRECT ANSWER: Underwriters have three main
jobs: _____ ___ ___ ____, ____ ___ ___ ___, __ ____ _ __ _ _ _ __ _
APR - CORRECT ANSWER: The ______ is the actual interest rate the borrower pays
when all the costs of obtaining the credit included:
A) Yield
B) Underwriting
C) Straight term mortgage
2024-2025 200+ Questions and Verified Correct
Answers Guaranteed A+
$1352.47 - CORRECT ANSWER: The sales price is $325,000 with a loan-to-value of
85%. The interest rate is 5 7/8%. The term is 30 years. What is the amount of interest
the buyer will pay the first month of the loan? Use an actual year.
A) $1592.50
B) $1565.42
C) $1330.60
D) $1352.47
$2548.87 - CORRECT ANSWER: Calculate the montly payment on an 80% loan with a
sales price of $350,000 for 30 year term at 6.75%. The annual taxes are $7300 and the
annual insurance premium is $1480. The loan factor is 6.49 per $1000.
A) $2548.87
B) $3003.17
C) $2668.18
D) $2945.20
$4250.00 - CORRECT ANSWER: The Smiths have long-term debts of $365 and you
have estimated their monthly mortgage payment to be $1250 with lender ratios of
33%/38%. How much income must they earn monthly to qualify?
A) $4250.00
B) $2984.85
C) $2592.10
D) $4151.52
$4560 - CORRECT ANSWER: The lender is charging 2 discount points on a home that
is priced at $285,000. The buyers are obtaining 80% financing. What would be the
dollar amount of the discount?
A) $4625
B) $925
C) $4560
D) $2700
2 mths insuance reserve; 3 mths tax reserve; 2 mths PMI reserve - CORRECT
ANSWER: Prepaids are items that are typically collected at closing: ______ ___ ____
___; ____ ____ ____ ____; ___ ____ ____ ____
, 3 - CORRECT ANSWER: Regulation Z is the Truth in Lending Act (TILA). it provides a
__ day right or rescission. The purchaser may rescind the transaction within _ days after
the date of consummation of the transaction.
3a + 3b = 3c - CORRECT ANSWER: In the contract remember __ + ____ must always
equal ___! No exceptions!!
80% - CORRECT ANSWER: Calculate the loan-to-value if a borrower is purchasing a
house for $125,000 and is putting down $25,000 as a down payment.
A) 100%
B) 80%
C) 85%
D) 90%
80% - CORRECT ANSWER: PMI is generally required on a conventional loan with a
loan-to-value ratio in excess of:
A) 75%
B) 80%
C) 70%
D) Determined by the lender
90 - CORRECT ANSWER: To qualify for the Texas Veterans Land Fund, the Texas
Veteran must have served ___ consecutive days active duty since September 16, 1940
and be a resident of Texas at the time of entry into the service, or at least two
consecutive years prior to filling out the application.
A single number used by the lender to predict the likely future perfomance of a person's
loan - CORRECT ANSWER: What is credit scoring?
A) Underlying items of importance on your credit report
B) The federal legislation that prevents discrimination regarding credit applicants
C) The score you receive when you open a revolving charge card
D) A single number used by the lender to predict the likely future perfomance of a
person's loan
AAA Credit - CORRECT ANSWER: Lenders will look at all of the following credit
reporting agencies for the credit rating of the buyer EXCEPT:
A) Equifax
B) Trans Union
C) Experian
D) AAA Credit
, acceleration clause - CORRECT ANSWER: _______ _______: is the common
provision of a mortgage providing the holder with the right to demand that the entire
outstanding balance is immediately due and payable in the event of a default.
Alienation clause - CORRECT ANSWER: The clause in a mortgage that stipulates that
when the property is sold, the entire blanace of the loan is due and payable (and not
able to be assumed) is the ______ clause.
A) Deprecation clause
B) Amortization clause
C) Alienation clause
D) note
alienation clause - CORRECT ANSWER: The opposite of an assumption clause would
be an _____ ___. The _____ _____, also known as the "Due on Sale" clause, states
that if the property is sold, the entire balance of the loan must be paid off not allowing
the loan to be assumed.
All of the above (The term, The late charges, The promise to pay) - CORRECT
ANSWER: Of the following items, which is (are) included in the note?
A) The term
B) The late charges
C) The promise to pay
D) All of the above
Amortization - CORRECT ANSWER: _______: the systematic and continuous
repayment of an obligation through periodic installments until the debt has been repaid
in full.
Amortization - CORRECT ANSWER: _____: the total payment is the same each month
but the allocation of interest is different each month.
Annual Percentage Rate (APR) - CORRECT ANSWER: ____ ___ ___ (___) is the
actual interest rate the borrower pays when all the costs of obtaining credit are included
approval of the applicant, approval or the property, approval of the final closing
statement known as the HUD-1 - CORRECT ANSWER: Underwriters have three main
jobs: _____ ___ ___ ____, ____ ___ ___ ___, __ ____ _ __ _ _ _ __ _
APR - CORRECT ANSWER: The ______ is the actual interest rate the borrower pays
when all the costs of obtaining the credit included:
A) Yield
B) Underwriting
C) Straight term mortgage
