STATE (Nebraska) Real Estate Practice Exam 1 Questions and Answers 100% Pass

STATE (Nebraska) Real Estate Practice Exam 1 Questions and Answers 100% Pass Restrictive Covenants - Answer- prohibit all future owners from certain actions or modifications of their property and placed by private parties, consistency and desirability of a neighborhood Closing Disclosure, a statement of actual charges and adjustments, to the borrower by the lender - Answer- The TRID form, TILA-RESPA escrow accounts that accumulate funds from closing costs and monthly payments to ensure that property taxes and homeowner's insurance are kept current are called what? - Answer- impound accounts Options are generally concerned with only two things: - Answer- time and price When can a landlord evict a disabled blind or disabled tenant from the premises? If the tenant has... - Answer- loud parties, makes too much noise, and is consistently disturbing other tenants When does a listing contract expire? At... - Answer- At closing (upon expiration of the contract date) mortgage broker arranges... - Answer- arranges loans between borrowers and investors One discount point from federal VA or FHA loan is - Answer- 1% of the loan amount An increase in the availability of money would increase or decrease interest rates? - Answer- decrease What does amortization mean? To... - Answer- reduce or pay off (a debt) with regular payments. a balloon payment - Answer- a final loan payment that is much larger than the regular monthly payments In an installment land contract, what type of title did the seller retain? - Answer- Legal Second Mortgage - Answer- holds a higher rate of interest what happens in a second mortgage... interest rate, risk and exposure - Answer- high interest, high risk and added exposure for lender, they are 2nd in line after the 1st mortgage holder. in case of foreclosure, that means the first mortgage holder is paid in full before any money comes out. Urury is what type of interest - Answer- rates above the interest rate ceiling (illegal interest, loan sharks) A borrower bought a $174,000 house with no down payment. The loan was probably - Answer- VA Loan (zero-down instruments, while FHA loans permit low down payments in the 5% range. A house sold for $420,000. The buyer made a 20% down payment. Monthly interest on the loan was $1,400. What was the interest rate on the loan? - Answer- With a 20% down payment of $84,000, the buyer had a mortgage of $336,000. Since interest is expressed in annual terms, multiply the monthly payment of $1,400 times twelve. That yields an annual interest cost of $16,800, divided by the principal balance of $336,000, yields an annual rate of 5%. what type of loan requires principal and interest payments at regular intervals and debt is liquidated until its payed off - Answer- amortized loan Under RESPA, a copy of Real Estate Settlement Costs must be given when? - Answer- At the time of loan application, or within 3 days of application. Who pays for the broker's commission, buyer or seller? - Answer- the seller An impound/ reserve benefits ____ the most - Answer- the lender A VA loan may be granted for the purchase of a one-family to four-family property if - Answer- the veteran agrees to live there sale-leaseback transaction - Answer- the owner of an asset sells it and immediately leases it back from the new owner standard yardstick expressing true annual cost of borrowing.. percentage rate - Answer- Annual percentage rate, APR RESPA would prohibit which of the following acts? paying... - Answer- Paying of kickbacks In most states, by paying the debt after a foreclosure sale, the mortgagor has the right to regain the property. What is this right called? - Answer- Statutory right of redemption The lender is required, under RESPA, to provide a detailed "G