AYPO Real Estate Finance
AYPO REAL ESTATE FINANCE NEWEST 2025 ACTUAL EXAM
COMPLETE QUESTIONS AND CORRECT ANSWERS(VERIFIED
ANSWERS)|ALREADY GRADED A+
An eligible veteran made a purchase offer of $180,000 on a home he wants to finance with a VA
guaranteed loan. Four weeks after the offer was accepted, a certificate of reasonable value
(CRV) for $177,000 was issued for the property. In this situation, the veteran could do all of the
following except
a. withdraw from the purchase without penalty
b. purchase the property with a $3,000 cash down payment
c. insist that the lender loan up the allowable maximum of the certificate of eligibility
d. negotiate with the seller to reduce the price to $3,000 - ANSWER-insist that the lender loan
up the allowable maximum of the certificate of eligibility
if the amount realized at a sheriff's sale as part of a mortgage foreclosure is more than the
amount of the indebtedness and expenses, then the excess belongs to
a. the mortgagee
b. the sheriff's office
c. the county
d. the mortgagor - ANSWER-the mortgagor
when real estate is sold under an installment land contract and the buyer takes possession of
the property the legal title,
a. must be transferred to a land trust
b. is kept by the seller until the purchase price is paid according to the contract
c. is transferred to the buyer
d. is subject to a purchase money mortgage - ANSWER-is kept by the seller until the purchase
price is paid accourding to the contract
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members of which of the following pairs of terms are synonymous
a. construction loan and pass-through looan
b. interim financing and construction loan
c. takeout loan and construction loan
d. pass-through loan and takeout loan - ANSWER-interim financing and construction loan
a freindly foreclosure enables a mortgagor to prevent the mortgagee from taking the property
by statutory means. This can be accomplisted by use of a/n:
a. assumption
b. deed in lieu of foreclosure
c. escrow deed
d. reconveyance deed - ANSWER-deed in lieu of foreclosure
the purpose of a mortgage is to
a. create a lien on the property
b. restrict the borrowers use of the property
c. provide security for the loan - ANSWER-provide security for the loan
under an installment contract, the title to the property is held by the
a. trustee
b. vendor
c. trustor
d. vendee - ANSWER-vendor
which of the following is true about an installment (land) contrat?
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a. the buyer obtains a mortgage loan
b. the seller delivers legal title to the buyer
c. the buyer is given posession
d. the seller delivers a deed to the buyer - ANSWER-the seller delivers legal title to the buyer
a promissory note
a. is a guarantee by a government agency
b. makes the borroower personally liable for the debt
c. is an agreement to perform nor not to perform certain acts
d. may not be executed in connection with a real estate loan - ANSWER-makes the borrower
personally liable for the debt
the fee charged by a mortgage broker to arrange a loan is a/n
a. loan origination fee
b. prepayment penalty
c. prepayment of mortgage insurance
d. advance interest payment - ANSWER-loan origination fee
which of the following loans to individuals is NOT affected by the Truth in Lending Law under
Regulation Z?
a. household use
b. business use
c. swimming pools
d. room additions - ANSWER-business use
the defeasance clause in a mortgage requires the mortgagee to execute a/n
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a. assignment of mortgage
b. satisfaction of mortgage
c. subordinatio agreement
d. partial release agreement - ANSWER-satisfacation of mortgage
all of the following clauses in a loan agreement enable the lender to demand the entire
remaining dept be paid immediately EXCEPT a/n
a. due-on-sale clause
b. alienation clause
c. defeasance clause
d. acceleration clause - ANSWER-defeasance clause
A real estate loan payable in periodic installments that are sufficient to pay the principal in full
during the term of the loan is called a
a. straight loan
b. partially amortized loan
c. conventional loan
d. fully amortized loan - ANSWER-fully amortized loan
the pledging of property as security for payment of a loan without surrendering possession is
a. subordination
b. hypothecation
c. equity
d. disintermediation - ANSWER-hypothecation
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AYPO REAL ESTATE FINANCE NEWEST 2025 ACTUAL EXAM
COMPLETE QUESTIONS AND CORRECT ANSWERS(VERIFIED
ANSWERS)|ALREADY GRADED A+
An eligible veteran made a purchase offer of $180,000 on a home he wants to finance with a VA
guaranteed loan. Four weeks after the offer was accepted, a certificate of reasonable value
(CRV) for $177,000 was issued for the property. In this situation, the veteran could do all of the
following except
a. withdraw from the purchase without penalty
b. purchase the property with a $3,000 cash down payment
c. insist that the lender loan up the allowable maximum of the certificate of eligibility
d. negotiate with the seller to reduce the price to $3,000 - ANSWER-insist that the lender loan
up the allowable maximum of the certificate of eligibility
if the amount realized at a sheriff's sale as part of a mortgage foreclosure is more than the
amount of the indebtedness and expenses, then the excess belongs to
a. the mortgagee
b. the sheriff's office
c. the county
d. the mortgagor - ANSWER-the mortgagor
when real estate is sold under an installment land contract and the buyer takes possession of
the property the legal title,
a. must be transferred to a land trust
b. is kept by the seller until the purchase price is paid according to the contract
c. is transferred to the buyer
d. is subject to a purchase money mortgage - ANSWER-is kept by the seller until the purchase
price is paid accourding to the contract
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members of which of the following pairs of terms are synonymous
a. construction loan and pass-through looan
b. interim financing and construction loan
c. takeout loan and construction loan
d. pass-through loan and takeout loan - ANSWER-interim financing and construction loan
a freindly foreclosure enables a mortgagor to prevent the mortgagee from taking the property
by statutory means. This can be accomplisted by use of a/n:
a. assumption
b. deed in lieu of foreclosure
c. escrow deed
d. reconveyance deed - ANSWER-deed in lieu of foreclosure
the purpose of a mortgage is to
a. create a lien on the property
b. restrict the borrowers use of the property
c. provide security for the loan - ANSWER-provide security for the loan
under an installment contract, the title to the property is held by the
a. trustee
b. vendor
c. trustor
d. vendee - ANSWER-vendor
which of the following is true about an installment (land) contrat?
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a. the buyer obtains a mortgage loan
b. the seller delivers legal title to the buyer
c. the buyer is given posession
d. the seller delivers a deed to the buyer - ANSWER-the seller delivers legal title to the buyer
a promissory note
a. is a guarantee by a government agency
b. makes the borroower personally liable for the debt
c. is an agreement to perform nor not to perform certain acts
d. may not be executed in connection with a real estate loan - ANSWER-makes the borrower
personally liable for the debt
the fee charged by a mortgage broker to arrange a loan is a/n
a. loan origination fee
b. prepayment penalty
c. prepayment of mortgage insurance
d. advance interest payment - ANSWER-loan origination fee
which of the following loans to individuals is NOT affected by the Truth in Lending Law under
Regulation Z?
a. household use
b. business use
c. swimming pools
d. room additions - ANSWER-business use
the defeasance clause in a mortgage requires the mortgagee to execute a/n
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a. assignment of mortgage
b. satisfaction of mortgage
c. subordinatio agreement
d. partial release agreement - ANSWER-satisfacation of mortgage
all of the following clauses in a loan agreement enable the lender to demand the entire
remaining dept be paid immediately EXCEPT a/n
a. due-on-sale clause
b. alienation clause
c. defeasance clause
d. acceleration clause - ANSWER-defeasance clause
A real estate loan payable in periodic installments that are sufficient to pay the principal in full
during the term of the loan is called a
a. straight loan
b. partially amortized loan
c. conventional loan
d. fully amortized loan - ANSWER-fully amortized loan
the pledging of property as security for payment of a loan without surrendering possession is
a. subordination
b. hypothecation
c. equity
d. disintermediation - ANSWER-hypothecation
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