ACEABLE AGENT GEORGIA POST-LICENSE
EXAM WITH 150+ VERIFIED QUESTIONS AND
ANSWERS (RATIONALE AVAILABLE) ||
GUARANTEED PASS || ALREADY GRADED A+ ||
LATEST VERSION!!!
Kadeen has a checking account and a savings account with a combined balance
of $28,000. He has a credit card with a balance of $2,500 and a student loan to
repay in the amount of $18,500. His Beanie Baby collection was just appraised
at $3,500. His home office equipment has a retail value of $4,000.Assuming this
is all the financial information there is for Kadeen, what is his net worth?
A. $21,000
B. $35,000
C. $14,500
D. $56,000 - ANSWER-C. $14,500
To solve for net worth use this formula: Assets - Debts = Net worth. Kadeen's
assets (bank accounts, Beanie Baby collection, and home office equipment) =
$35,500. His debts (credit card balance and student loan) come to $21,000. So,
$35,500 - $21,000 = $14,500 net worth.
A monthly payment includes:
A. principal, insurance, taxes, and escrow
B. principal, interest, insurance, and prorations
C. principal, interest, fees and insurance
D. principal, interest, taxes and insurance - ANSWER-D. principal, interest,
taxes and insurance
,Rory makes $5,000 a month and is looking at a condo with a monthly mortgage
payment of $1,500.
Can he come in under the FHA maximum allowable payment-to-income ratio?
A. With a payment-to-income ratio of 30%, Rory would come in under the
allowable FHA maximum.
B. With a payment-to-income ratio of 35%, Rory would NOT come in under the
allowable FHA maximum.
C. With a payment-to-income ratio of 35%, Rory would come in under the
allowable FHA maximum.
D. With a payment-to-income ratio of 30%, Rory would NOT come in under
the allowable FHA maximum. - ANSWER-A. With a payment-to-income ratio
of 30%, Rory would come in under the allowable FHA maximum.
To answer this question, you need to know that the allowable FHA maximum
payment-to-income ratio is 31%. You also need to know how to solve for
payment-to-income ratio. Here's the formula for that: Monthly payment ÷
Monthly income = Payment-to-income ratio. So, in Rory's case, $1,500 ÷
$5,000 = 0.3 or 30%. So, Rory would come in under the allowable FHA
maximum payment-to-income ratio.
Jill is refinancing her home. Payments on the new loan will be $350 less than
her old loan. The refinancing costs will be $2,100. How long will it be until
until the refinancing pays off for Jill?
A. 6 months
B. 5 months
C. 12 months
D. 2 years - ANSWER-A. 6 months
Hank buys a home for $350,000. He took out a $280,000 mortgage to pay for
the home. What is his LTV ratio?
A. 90%
,B. 87%
C. 85%
D. 80% - ANSWER-D. 80%
$280,000 divided by $350,000 equals 0.80, which means the loan has an LTV
ratio of 80%.
An ARM's margin is 2% and the current index rate is 6%. The interest rate will
be:
A. 8%
B. 4%
C. 2%
D. 6% - ANSWER-A. 8%
If the margin is 2% and the index rate is 6%, the interest rate will be 8%
Jeremy took out a 5/1 ARM. What does the "5" mean?
A. the margin is 5
B. the interest rate will start at 5%
C. the loan has a five-year term
D. the interest rate is fixed for five years - ANSWER-D. the interest rate is fixed
for five years
The first number will always be the number of years that the interest rate is
fixed for. A 5/1 will have a fixed interest rate for five years.
What does a rate cap protect a borrower from?
A. the loan changing hand on the secondary market
B. a sudden and excessive increase in interest rate
, C. the loan switching to fixed-rate
D. the decrease of a loan's interest rate - ANSWER-B. a sudden and excessive
increase in interest rate
ARMs can be disadvantageous to a borrower because:
A. the borrower might have trouble making payments if their rate increases
B. interest rates could decrease over the life of the loan
C. they are more predictable than other types of loans
D. cap rates are only used for fixed-rate loans - ANSWER-A. the borrower
might have trouble making payments if their rate increases
What does a debt-to-income ratio take into account that payment-to-income
ratio does not?
A. the income of the applicant and housing payment
B. all other debts beyond the housing payment that the borrower has
C. the income of the applicant and long-term debts
D. the income and credit score of the applicant - ANSWER-B. all other debts
beyond the housing payment that the borrower has
Like the payment-to-income ratio, the debt-to-income ratio is an underwriting
process used to measure a borrower's creditworthiness and ability to take on the
responsibility of a mortgage loan. The difference between the two is that a debt-
to-income ratio includes all other debts, in addition to the housing payment, that
the borrower has, including a car payment, credit card debt, or any type of
recurring loan or court-ordered payment.
The payment-to-income ratio for a conventional loan cannot exceed ___%.
The payment-to-income ratio for an FHA loan cannot exceed ____%.
The debt-to-income ratio for a conventional loan cannot exceed ___%.
The debt-to-income ratio for an FHA loan cannot exceed ___% - ANSWER-
28%
EXAM WITH 150+ VERIFIED QUESTIONS AND
ANSWERS (RATIONALE AVAILABLE) ||
GUARANTEED PASS || ALREADY GRADED A+ ||
LATEST VERSION!!!
Kadeen has a checking account and a savings account with a combined balance
of $28,000. He has a credit card with a balance of $2,500 and a student loan to
repay in the amount of $18,500. His Beanie Baby collection was just appraised
at $3,500. His home office equipment has a retail value of $4,000.Assuming this
is all the financial information there is for Kadeen, what is his net worth?
A. $21,000
B. $35,000
C. $14,500
D. $56,000 - ANSWER-C. $14,500
To solve for net worth use this formula: Assets - Debts = Net worth. Kadeen's
assets (bank accounts, Beanie Baby collection, and home office equipment) =
$35,500. His debts (credit card balance and student loan) come to $21,000. So,
$35,500 - $21,000 = $14,500 net worth.
A monthly payment includes:
A. principal, insurance, taxes, and escrow
B. principal, interest, insurance, and prorations
C. principal, interest, fees and insurance
D. principal, interest, taxes and insurance - ANSWER-D. principal, interest,
taxes and insurance
,Rory makes $5,000 a month and is looking at a condo with a monthly mortgage
payment of $1,500.
Can he come in under the FHA maximum allowable payment-to-income ratio?
A. With a payment-to-income ratio of 30%, Rory would come in under the
allowable FHA maximum.
B. With a payment-to-income ratio of 35%, Rory would NOT come in under the
allowable FHA maximum.
C. With a payment-to-income ratio of 35%, Rory would come in under the
allowable FHA maximum.
D. With a payment-to-income ratio of 30%, Rory would NOT come in under
the allowable FHA maximum. - ANSWER-A. With a payment-to-income ratio
of 30%, Rory would come in under the allowable FHA maximum.
To answer this question, you need to know that the allowable FHA maximum
payment-to-income ratio is 31%. You also need to know how to solve for
payment-to-income ratio. Here's the formula for that: Monthly payment ÷
Monthly income = Payment-to-income ratio. So, in Rory's case, $1,500 ÷
$5,000 = 0.3 or 30%. So, Rory would come in under the allowable FHA
maximum payment-to-income ratio.
Jill is refinancing her home. Payments on the new loan will be $350 less than
her old loan. The refinancing costs will be $2,100. How long will it be until
until the refinancing pays off for Jill?
A. 6 months
B. 5 months
C. 12 months
D. 2 years - ANSWER-A. 6 months
Hank buys a home for $350,000. He took out a $280,000 mortgage to pay for
the home. What is his LTV ratio?
A. 90%
,B. 87%
C. 85%
D. 80% - ANSWER-D. 80%
$280,000 divided by $350,000 equals 0.80, which means the loan has an LTV
ratio of 80%.
An ARM's margin is 2% and the current index rate is 6%. The interest rate will
be:
A. 8%
B. 4%
C. 2%
D. 6% - ANSWER-A. 8%
If the margin is 2% and the index rate is 6%, the interest rate will be 8%
Jeremy took out a 5/1 ARM. What does the "5" mean?
A. the margin is 5
B. the interest rate will start at 5%
C. the loan has a five-year term
D. the interest rate is fixed for five years - ANSWER-D. the interest rate is fixed
for five years
The first number will always be the number of years that the interest rate is
fixed for. A 5/1 will have a fixed interest rate for five years.
What does a rate cap protect a borrower from?
A. the loan changing hand on the secondary market
B. a sudden and excessive increase in interest rate
, C. the loan switching to fixed-rate
D. the decrease of a loan's interest rate - ANSWER-B. a sudden and excessive
increase in interest rate
ARMs can be disadvantageous to a borrower because:
A. the borrower might have trouble making payments if their rate increases
B. interest rates could decrease over the life of the loan
C. they are more predictable than other types of loans
D. cap rates are only used for fixed-rate loans - ANSWER-A. the borrower
might have trouble making payments if their rate increases
What does a debt-to-income ratio take into account that payment-to-income
ratio does not?
A. the income of the applicant and housing payment
B. all other debts beyond the housing payment that the borrower has
C. the income of the applicant and long-term debts
D. the income and credit score of the applicant - ANSWER-B. all other debts
beyond the housing payment that the borrower has
Like the payment-to-income ratio, the debt-to-income ratio is an underwriting
process used to measure a borrower's creditworthiness and ability to take on the
responsibility of a mortgage loan. The difference between the two is that a debt-
to-income ratio includes all other debts, in addition to the housing payment, that
the borrower has, including a car payment, credit card debt, or any type of
recurring loan or court-ordered payment.
The payment-to-income ratio for a conventional loan cannot exceed ___%.
The payment-to-income ratio for an FHA loan cannot exceed ____%.
The debt-to-income ratio for a conventional loan cannot exceed ___%.
The debt-to-income ratio for an FHA loan cannot exceed ___% - ANSWER-
28%
