NYS Real Estate U Final Exam (Latest 2026 Update) |
Complete Questions and Correct Detailed Answers|
Already Graded A+
Graduated Payment Mortgage (GPM)
A type of fixed-rate mortgage in which the payment increases
gradually from an initial low base level to a desired, final level. The
monthly payments are lower in the early years of the mortgage term,
but increase at specific intervals until the payment amount is
sufficient to amortize the loan over the remaining term.
Construction Mortgage
A form of interim, or temporary, short-term financing for creating
improvements or buildings on a property.
Negative Amortization
Occurs when the monthly payment is less than full interest and does
not pay any principal. The interest that is unpaid accrues and the
principal balance owed increases.
Conventional Loans
Issued by commercial lenders without any participation by an agency
of the federal government.
Loans with an loan-to-value ratio greater than 80% need to obtain
private mortgage insurance (PMI).
Government Loans
Involve some kind of participation by a government agency.
pg. 1
,The most common type is an FHA-insured loan.
Mortgage insurance premium (MIP) is paid upfront when obtaining
an FHA-insured loan.
VA-guaranteed loans are another example. These loans are offered to
Veterans.
Prepayment Penalty Clause
States that the borrower cannot pay off the loan at any time before
expiration of the full mortgage term without a financial penalty for
early payoff.
Real Estate Settlement Procedures Act (RESPA)
A consumer protection statute, first passed in 1974. Also known as
Regulation X.
The purpose of RESPA is:
1) To help consumers become better shoppers for settlement services
and
2) To eliminate kickbacks and referral fees that unnecessarily increase
the costs of certain settlement services.
Truth in Lending Act (TILA) / Regulation Z
United States federal law designated to promote the informed use of
consumer credit, by requiring disclosures about its terms and cost to
standardize the manner in which costs associated with borrowing are
calculated and disclosed.
pg. 2
,TILA requires four main disclosures:
1) Annual percentage rate
2) Finance charge
3) Amount financed
4) Total amount of money to be paid toward the mortgage in principal
and interest payments
Loan to Value Ratio (LTV)
A financial term used by lenders to express the ratio of a loan to the
value of an asset ( property ) purchased . Determined by using the
Purchase Price or the Appraised Value , whichever is less .
For example:
If a property is being purchased for $500,000 and the buyer obtains a
$400,000 mortgage, the LTV will be 80%.
$400,000 is 80%
of $500,000 (400,000/500,000 = 0.80).
Points and Buydowns
1 point equals 1% of the loan amount.
For example: If a lender charges 1-1/2 points as a loan origination fee,
the fee will equal 1.5% of the loan amount.
A buydown allows the borrower to obtain a lower interest rate by
paying additional points upfront to the lender.
pg. 3
, A buydown may also be referred to as discount points.
Usury Laws
Govern the amount of interest that can be charged on a loan.
Pocket Card
A card issued by the Department of State to each licensee which
contains the photo , name and business address of the licensee , and ,
in the case of a real estate salesperson , the name and business address
of the broker with whom he or she is associated and shall certify that
the person whose name appears thereon is a licensed real estate broker
or salesperson
Must be carried by the agent at all times when serving as a
salesperson .
Article 12 A
The section of the New York Real Property Law pertaining to real
estate salespersons and brokers
Sponsor
A licensed real estate broker that holds the license of a salesperson
Listing Agreement
An employment contract between principal and agent , authorizing
the agent to perform services for the principle involving the latter's
property
pg. 4
Complete Questions and Correct Detailed Answers|
Already Graded A+
Graduated Payment Mortgage (GPM)
A type of fixed-rate mortgage in which the payment increases
gradually from an initial low base level to a desired, final level. The
monthly payments are lower in the early years of the mortgage term,
but increase at specific intervals until the payment amount is
sufficient to amortize the loan over the remaining term.
Construction Mortgage
A form of interim, or temporary, short-term financing for creating
improvements or buildings on a property.
Negative Amortization
Occurs when the monthly payment is less than full interest and does
not pay any principal. The interest that is unpaid accrues and the
principal balance owed increases.
Conventional Loans
Issued by commercial lenders without any participation by an agency
of the federal government.
Loans with an loan-to-value ratio greater than 80% need to obtain
private mortgage insurance (PMI).
Government Loans
Involve some kind of participation by a government agency.
pg. 1
,The most common type is an FHA-insured loan.
Mortgage insurance premium (MIP) is paid upfront when obtaining
an FHA-insured loan.
VA-guaranteed loans are another example. These loans are offered to
Veterans.
Prepayment Penalty Clause
States that the borrower cannot pay off the loan at any time before
expiration of the full mortgage term without a financial penalty for
early payoff.
Real Estate Settlement Procedures Act (RESPA)
A consumer protection statute, first passed in 1974. Also known as
Regulation X.
The purpose of RESPA is:
1) To help consumers become better shoppers for settlement services
and
2) To eliminate kickbacks and referral fees that unnecessarily increase
the costs of certain settlement services.
Truth in Lending Act (TILA) / Regulation Z
United States federal law designated to promote the informed use of
consumer credit, by requiring disclosures about its terms and cost to
standardize the manner in which costs associated with borrowing are
calculated and disclosed.
pg. 2
,TILA requires four main disclosures:
1) Annual percentage rate
2) Finance charge
3) Amount financed
4) Total amount of money to be paid toward the mortgage in principal
and interest payments
Loan to Value Ratio (LTV)
A financial term used by lenders to express the ratio of a loan to the
value of an asset ( property ) purchased . Determined by using the
Purchase Price or the Appraised Value , whichever is less .
For example:
If a property is being purchased for $500,000 and the buyer obtains a
$400,000 mortgage, the LTV will be 80%.
$400,000 is 80%
of $500,000 (400,000/500,000 = 0.80).
Points and Buydowns
1 point equals 1% of the loan amount.
For example: If a lender charges 1-1/2 points as a loan origination fee,
the fee will equal 1.5% of the loan amount.
A buydown allows the borrower to obtain a lower interest rate by
paying additional points upfront to the lender.
pg. 3
, A buydown may also be referred to as discount points.
Usury Laws
Govern the amount of interest that can be charged on a loan.
Pocket Card
A card issued by the Department of State to each licensee which
contains the photo , name and business address of the licensee , and ,
in the case of a real estate salesperson , the name and business address
of the broker with whom he or she is associated and shall certify that
the person whose name appears thereon is a licensed real estate broker
or salesperson
Must be carried by the agent at all times when serving as a
salesperson .
Article 12 A
The section of the New York Real Property Law pertaining to real
estate salespersons and brokers
Sponsor
A licensed real estate broker that holds the license of a salesperson
Listing Agreement
An employment contract between principal and agent , authorizing
the agent to perform services for the principle involving the latter's
property
pg. 4
