STATE (Nebraska) Real Estate Practice
Exam 1 Questions With Correct Answers
Restrictive |Covenants |- |CORRECT |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 |- |CORRECT |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? |- |CORRECT |
ANSWER✔✔-impound |accounts
Options |are |generally |concerned |with |only |two |things: |- |CORRECT |ANSWER✔✔-time |and |price
When |can |a |landlord |evict |a |disabled |blind |or |disabled |tenant |from |the |premises? |If |the |
tenant |has... |- |CORRECT |ANSWER✔✔-loud |parties, |makes |too |much |noise, |and |is |consistently |
disturbing |other |tenants
When |does |a |listing |contract |expire? |At... |- |CORRECT |ANSWER✔✔-At |closing |(upon |expiration |
of |the |contract |date)
mortgage |broker |arranges... |- |CORRECT |ANSWER✔✔-arranges |loans |between |borrowers |and |
investors
One |discount |point |from |federal |VA |or |FHA |loan |is |- |CORRECT |ANSWER✔✔-1% |of |the |loan |
amount
, An |increase |in |the |availability |of |money |would |increase |or |decrease |interest |rates? |- |CORRECT |
ANSWER✔✔-decrease
What |does |amortization |mean? |To... |- |CORRECT |ANSWER✔✔-reduce |or |pay |off |(a |debt) |with |
regular |payments.
a |balloon |payment |- |CORRECT |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? |- |CORRECT |
ANSWER✔✔-Legal
Second |Mortgage |- |CORRECT |ANSWER✔✔-holds |a |higher |rate |of |interest
what |happens |in |a |second |mortgage... |interest |rate, |risk |and |exposure |- |CORRECT |
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 |- |CORRECT |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 |- |
CORRECT |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? |- |CORRECT |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 |
Exam 1 Questions With Correct Answers
Restrictive |Covenants |- |CORRECT |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 |- |CORRECT |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? |- |CORRECT |
ANSWER✔✔-impound |accounts
Options |are |generally |concerned |with |only |two |things: |- |CORRECT |ANSWER✔✔-time |and |price
When |can |a |landlord |evict |a |disabled |blind |or |disabled |tenant |from |the |premises? |If |the |
tenant |has... |- |CORRECT |ANSWER✔✔-loud |parties, |makes |too |much |noise, |and |is |consistently |
disturbing |other |tenants
When |does |a |listing |contract |expire? |At... |- |CORRECT |ANSWER✔✔-At |closing |(upon |expiration |
of |the |contract |date)
mortgage |broker |arranges... |- |CORRECT |ANSWER✔✔-arranges |loans |between |borrowers |and |
investors
One |discount |point |from |federal |VA |or |FHA |loan |is |- |CORRECT |ANSWER✔✔-1% |of |the |loan |
amount
, An |increase |in |the |availability |of |money |would |increase |or |decrease |interest |rates? |- |CORRECT |
ANSWER✔✔-decrease
What |does |amortization |mean? |To... |- |CORRECT |ANSWER✔✔-reduce |or |pay |off |(a |debt) |with |
regular |payments.
a |balloon |payment |- |CORRECT |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? |- |CORRECT |
ANSWER✔✔-Legal
Second |Mortgage |- |CORRECT |ANSWER✔✔-holds |a |higher |rate |of |interest
what |happens |in |a |second |mortgage... |interest |rate, |risk |and |exposure |- |CORRECT |
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 |- |CORRECT |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 |- |
CORRECT |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? |- |CORRECT |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 |
