Gold Coast Real Estate Homework Chapter 12 Test Exam
Questions And Answers Verified 100% Correct
How was title taken if a seller remained solely liable for the balance of a mortgage loan
subsequent to transfer of ownership?
(a) Novation
(b) Assumption
(c) Subject to
(d) Agreement for deed - ANSWER
How was title taken if a seller remained solely liable for the balance of a mortgage loan
subsequent to transfer of ownership?
(a) Novation
(b) Assumption
(c) Subject to
(d) Agreement for deed - ANSWER
Which mortgage clause is the borrower's promise to pay the property taxes during the
period of the loan? (a) Maintenance (b) Defeasance
(c) Receivership
(d) Tax - ANSWER
Which of the following would allow a homeowner to exit a foreclosure proceeding by
paying any amount due, including fees and interest prior to the completion of the
foreclosure process?
(a) Statutory right of redemption
(b) Right of defeasance
(c) Equity of redemption
(d) Right of reliction - ANSWER
Where would information such as the loan amount, interest rate, term of the loan, and
responsible parties be found?
(a) Sales contract
(b) Mortgage deed
(c) Mortgage
(d) Promissory note - ANSWER
What is the approximate effective rate of interest (APR) if a mortgage loan is based on
an interest rate of 5% per annum, and the lender charges 8 discount points?
(a) 4%
(b) 5.13%
, (c) 6%
(d) 13% - ANSWER
In a lien theory state such as Florida, title to property is held by whom during the time
period that the resident is making monthly mortgage payments?
(a) Bank
(b) Mortgagor
(c) Trustee
(d) Trustor - ANSWER
Two discount points on a 7% loan will increase the effective rate of interest on the loan
to approximately what rate?
(a) 7 1/8%.
(b) 7 1/4%.
(c) 7 1/2%.
(d) 7 3/4% - ANSWER
If a property owner is foreclosed upon, and the foreclosure results in a sale price greater
than the amount of the outstanding liens, the excess will likely be paid to which of the
following? (a) The court
(b) The mortgagee
(c) The mortgagor
(d) The Florida Real Estate Recovery Fund - ANSWER
After paying mortgage payments for many years, a homeowner finally pays the last
payment. How does the lender extinguish the mortgage lien on the property?
(a) The lender would file a Mortgage Revocation on the property.
(b) The lender would file a Satisfaction of Mortgage in the county records where the
property is located.
(c) The lender will send the borrower a letter of final payment which the borrower can
then show to any future buyers.
(d) The lender will stamp the original mortgage "paid in full" and send a copy to the
borrower. - ANSWER
Which would offer a potential borrower the most favorable interest rate over the life of
the loan?
(a) 4.0% plus 8 points
(b) 4.5% plus 6 points
(c) 4.75% plus 4 points
(d) 5% plus 2 points - ANSWER
If the loan amount is $850,000.00 and the loan to value ratio is 65%, what is the
purchase price of the property?
Questions And Answers Verified 100% Correct
How was title taken if a seller remained solely liable for the balance of a mortgage loan
subsequent to transfer of ownership?
(a) Novation
(b) Assumption
(c) Subject to
(d) Agreement for deed - ANSWER
How was title taken if a seller remained solely liable for the balance of a mortgage loan
subsequent to transfer of ownership?
(a) Novation
(b) Assumption
(c) Subject to
(d) Agreement for deed - ANSWER
Which mortgage clause is the borrower's promise to pay the property taxes during the
period of the loan? (a) Maintenance (b) Defeasance
(c) Receivership
(d) Tax - ANSWER
Which of the following would allow a homeowner to exit a foreclosure proceeding by
paying any amount due, including fees and interest prior to the completion of the
foreclosure process?
(a) Statutory right of redemption
(b) Right of defeasance
(c) Equity of redemption
(d) Right of reliction - ANSWER
Where would information such as the loan amount, interest rate, term of the loan, and
responsible parties be found?
(a) Sales contract
(b) Mortgage deed
(c) Mortgage
(d) Promissory note - ANSWER
What is the approximate effective rate of interest (APR) if a mortgage loan is based on
an interest rate of 5% per annum, and the lender charges 8 discount points?
(a) 4%
(b) 5.13%
, (c) 6%
(d) 13% - ANSWER
In a lien theory state such as Florida, title to property is held by whom during the time
period that the resident is making monthly mortgage payments?
(a) Bank
(b) Mortgagor
(c) Trustee
(d) Trustor - ANSWER
Two discount points on a 7% loan will increase the effective rate of interest on the loan
to approximately what rate?
(a) 7 1/8%.
(b) 7 1/4%.
(c) 7 1/2%.
(d) 7 3/4% - ANSWER
If a property owner is foreclosed upon, and the foreclosure results in a sale price greater
than the amount of the outstanding liens, the excess will likely be paid to which of the
following? (a) The court
(b) The mortgagee
(c) The mortgagor
(d) The Florida Real Estate Recovery Fund - ANSWER
After paying mortgage payments for many years, a homeowner finally pays the last
payment. How does the lender extinguish the mortgage lien on the property?
(a) The lender would file a Mortgage Revocation on the property.
(b) The lender would file a Satisfaction of Mortgage in the county records where the
property is located.
(c) The lender will send the borrower a letter of final payment which the borrower can
then show to any future buyers.
(d) The lender will stamp the original mortgage "paid in full" and send a copy to the
borrower. - ANSWER
Which would offer a potential borrower the most favorable interest rate over the life of
the loan?
(a) 4.0% plus 8 points
(b) 4.5% plus 6 points
(c) 4.75% plus 4 points
(d) 5% plus 2 points - ANSWER
If the loan amount is $850,000.00 and the loan to value ratio is 65%, what is the
purchase price of the property?
