MLS TESTS COMPILATION BUNDLE 2026
COMPREHENSIVE EXAM SCRIPT WITH
ACCURATE ANSWERS FULL REVIEW
GRADED A+
⩥ A buyer purchases a home in which the seller provides owner
financing with a 15 yr amortized loan. At the closing, the seller transfers
title to the buyer making the buyer the property's legal owner of record
while giving the seller a lien against the property. The type of financing
used for this property may be best described as a:
Answer: purchase money mortgage
⩥ Which of the following loan types would most likely include interest
rate caps, an applicable economic index and a margin added to that
index by the lender?
Answer: Adjustable rate mortgage
⩥ Mary sold her property to Ron subject to her existing mortgage. If
Ron defaults on the loan who is liable?
Answer: Mary only
⩥ A mortgage loan that includes appliances and patio furniture may be
described as which of the following?
Answer: Package loan
, ⩥ "Buy-down" describe a financing method that makes homes more
affordable for prospective buyers by reducing payments in the early
years of the loan. Regarding this loan technique, which of the following
is true?
Answer: Lenders are paid up front fees to lower the interest for a
borrower in the first few years of the loan, however, negative
amortization does not occur
⩥ Which party in the lending process will review the loan package and
make the final decision regarding approval or denial for the borrower?
Answer: The loan underwriter
⩥ John obtains a straight term loan for $75,000 at an 8% interest rate.
When he repaid the principal sum of $75,000, he paid an additional
$12,000 in interest. How long did John keep the loan?
Answer: Two years
⩥ When making a loan, the lender would normally base the loan to
value ratio on:
Answer: the appraised value or sales price, whichever is lower
⩥ A violation of Georgia state law concerning mortgage fraud can result
in
Answer: fines up to $100,000 and up to 20 years in prison
COMPREHENSIVE EXAM SCRIPT WITH
ACCURATE ANSWERS FULL REVIEW
GRADED A+
⩥ A buyer purchases a home in which the seller provides owner
financing with a 15 yr amortized loan. At the closing, the seller transfers
title to the buyer making the buyer the property's legal owner of record
while giving the seller a lien against the property. The type of financing
used for this property may be best described as a:
Answer: purchase money mortgage
⩥ Which of the following loan types would most likely include interest
rate caps, an applicable economic index and a margin added to that
index by the lender?
Answer: Adjustable rate mortgage
⩥ Mary sold her property to Ron subject to her existing mortgage. If
Ron defaults on the loan who is liable?
Answer: Mary only
⩥ A mortgage loan that includes appliances and patio furniture may be
described as which of the following?
Answer: Package loan
, ⩥ "Buy-down" describe a financing method that makes homes more
affordable for prospective buyers by reducing payments in the early
years of the loan. Regarding this loan technique, which of the following
is true?
Answer: Lenders are paid up front fees to lower the interest for a
borrower in the first few years of the loan, however, negative
amortization does not occur
⩥ Which party in the lending process will review the loan package and
make the final decision regarding approval or denial for the borrower?
Answer: The loan underwriter
⩥ John obtains a straight term loan for $75,000 at an 8% interest rate.
When he repaid the principal sum of $75,000, he paid an additional
$12,000 in interest. How long did John keep the loan?
Answer: Two years
⩥ When making a loan, the lender would normally base the loan to
value ratio on:
Answer: the appraised value or sales price, whichever is lower
⩥ A violation of Georgia state law concerning mortgage fraud can result
in
Answer: fines up to $100,000 and up to 20 years in prison
