Real Estate Final Exam #1 (150 Questions &
Ans) 2024-2025.
When the amortized payment of a mortgage remains constant over the period of
the loan but leaves an outstanding balance to be paid at the end, this payment is
called - Answer: a balloon payment.
In an installment land contract, what type of title did the seller retain? - Answer:
Legal
Which of the following is true of a second mortgage? - Answer: It is usually issued
at a higher rate of interest.
Usury MOST nearly means - Answer: illegal interest.
Page 1 of 29
,A borrower bought a $174,000 house with no down payment. The loan was
probably - Answer: a VA loan.
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: • 5%
Which of the following describes a mortgage that requires principal and interest
payments at regular intervals and is called the liquidation of debt by periodic
installment until the debt is satisfied? - Answer: Amortized loan
Which is the most common form of mortgage? - Answer: Amortized loan
Under RESPA, a copy of Real Estate Settlement Costs And You must be given -
Answer: at the time of loan application, or within 3 days of application.
Which of the following is a closing expense paid by the seller? - Answer: The
broker's commission
An impound or reserve account MOST benefits whom? - Answer: The lender
What are impound or reserve accounts also known as? - Answer: Escrow accounts
The HUD-1 form is - Answer: a statement of actual charges and adjustments.
Page 2 of 29
, 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.
Which of the following would usually occur in a sale-and-leaseback transaction? -
Answer: The property is sold on the condition that the new owner lease it back to
the seller at the time title passes.
A standardized yardstick expressing the true annual cost of borrowing is expressed
as the what? - Answer: APR
RESPA would prohibit which of the following acts? - Answer: A: paying of
kickbacks
Illumination:
RESPA concerns itself only with educating consumers about the true costs of
borrowing and standardizing lending practices. As such, referral "fees" are
prohibited.
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
Page 3 of 29
Ans) 2024-2025.
When the amortized payment of a mortgage remains constant over the period of
the loan but leaves an outstanding balance to be paid at the end, this payment is
called - Answer: a balloon payment.
In an installment land contract, what type of title did the seller retain? - Answer:
Legal
Which of the following is true of a second mortgage? - Answer: It is usually issued
at a higher rate of interest.
Usury MOST nearly means - Answer: illegal interest.
Page 1 of 29
,A borrower bought a $174,000 house with no down payment. The loan was
probably - Answer: a VA loan.
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: • 5%
Which of the following describes a mortgage that requires principal and interest
payments at regular intervals and is called the liquidation of debt by periodic
installment until the debt is satisfied? - Answer: Amortized loan
Which is the most common form of mortgage? - Answer: Amortized loan
Under RESPA, a copy of Real Estate Settlement Costs And You must be given -
Answer: at the time of loan application, or within 3 days of application.
Which of the following is a closing expense paid by the seller? - Answer: The
broker's commission
An impound or reserve account MOST benefits whom? - Answer: The lender
What are impound or reserve accounts also known as? - Answer: Escrow accounts
The HUD-1 form is - Answer: a statement of actual charges and adjustments.
Page 2 of 29
, 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.
Which of the following would usually occur in a sale-and-leaseback transaction? -
Answer: The property is sold on the condition that the new owner lease it back to
the seller at the time title passes.
A standardized yardstick expressing the true annual cost of borrowing is expressed
as the what? - Answer: APR
RESPA would prohibit which of the following acts? - Answer: A: paying of
kickbacks
Illumination:
RESPA concerns itself only with educating consumers about the true costs of
borrowing and standardizing lending practices. As such, referral "fees" are
prohibited.
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
Page 3 of 29
