15 Finance Questions on the Real Estate Exam 2023 #Finance

if advertising alone which the following would violate truth and lending laws an assumable Loan FHA financing available no down payment required easy financing terms no down payment required no down payment required triggers the truths of lending disclosure because it is a

specific statement about only one aspect of financing easy terms does not trigger the regulation because it’s not specific the discounts points charged by a lender on a federal VA or FHA Loan are a percentage of the a down payment B Loan amount C appraisal

price or D sales price Loan amount like points discount points are one-time charges equal to one percent of the Loan amount for each point charged a borrower takes out a mortgage Loan that requires monthly payments of 875.70 for 20 years and a

final payment of twenty four thousand and ninety five dollars this is what type of Loan a wraparound Loan a variable Loan a balloon Loan or an accelerated Loan balloon a blue payment mortgage is a mortgage which

does not fully amortized over the term of the note thus leaving a balance due to maturity the final payment is called a balloon payment because of its large size the Loan payment mortgages are most common in commercial Real Estate than in residential Real

Estate lenders use a Debt Income ratio as a method of setting escrow fees alone qualifying tool government Loan ratio a way of calculating your Net Worth Loan qualifying tool Income ratio

is used by lenders as a Loan qualifying tool there’s a method of calculating how much Debt is owed in relation to how much Income is coming in when the deed in which you take title of property contains the following Clause subject to an

existing Loan the lender is guaranteed that you will pay off a Loan you’re in danger of losing the property of the seller does not make the payments on the underlying Loan the sellers permanently relieves a liability you agree to assume to

the Loan and make the payments directly to the lender you are in danger of losing the property if the seller does not make the payments on the underlying Loan buying subject to means buying a home subject to the existing mortgage it means the seller is not paying

off the existing mortgage and the buyer is taking over the payments the unpaid balance of the existing mortgage is then calculated as part of the buyer’s purchase price but the seller remains responsible for paying off the existing Loan because it’s still in their name

which of the following statements about the housing Loans with federal government support is false Federal Veterans Affairs Loans guarantees may be used for condominium financing FHA May ensure mortgages for either apartment house projects or single-family

residents the federal government ensures The Lending agency against losses the federal government supplies funds to The Landing agency federal government supports many aspects of the Home Loans to make it easier for citizens to purchase homes for example the FHA insures lenders of

federally backed against Loans mortgages of single-family residents and multi-family properties in VA boat back Loans may be used to purchase Condominiums the federal government does not however Supply funds directly to lending agencies note this question asks

which of the following statements is false and it’s false that the federal government supplies funds to lending agencies which of these federal laws requires that none;">Finance charges be stated as an annual percentage rate Equal Credit Opportunity Act truths and Lending Act federal fair housing act or Real Estate settlement procedures Act truth in Lending Act the truth and lending Act of 1968 is United States

federal law designed to promote the informed use of consumer Credit by requiring disclosure about terms and costs to standardize the manner in which costs associated with borrowing are calculated and disclosed if a note is taken as earnest money it is the seller’s best

interest to have a note payable within 72 hours before closing at closing on the First Banking day after the buyer takes possession upon the seller’s acceptance upon the seller’s acceptance if a note is taken as earnest money it’s the seller’s best interest to have a note

payable upon the seller’s acceptance David sold his home and agreed to take back a note and a trust deed as part of the purchase price he wanted to have the note become due and payable if the property is resold to accomplish this which of the following Clauses should be in the note or trustee

substitution clause the science clause subordination clause or alienation clause in alienation clause an alienation clause is a clause and a financial contract that comes into effect when the ownership of a specified asset is transferred or a collateral property is sold alienation Clauses are

common in mortgage contracts providing full repayment if Real Estate property ownership changes just rate on a Real Estate mortgage is fixed by the federal government regulated by U.S Treasury determined by competition between the money and the

Capital Markets fixed by the state Real Estate Commission determined by competition between the money and Capital

href="https://cashnews.co/markets" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Markets the interest rate a Real Estate mortgage is generally determined by competition between the money and the Capital

style="font-weight: bold; color: #1a73e8; text-decoration: none;">Markets when processing a Real Estate Loan application A lender would correlate the characteristics of a borrower Loan and property to make a property appraisal a

Loan commitment Credit rating liability statement Loan commitment in determining whether or not to make a Loan commitment A lender will examine the borrower’s Income their character and the property When A

lender speaks of discounting the lender is probably referring to the process of determining the effective interest rate the difference between the nominal interest rate and the effective interest rate on a specified Loan the process of determining the actual Yield

of a given Loan by adjusting the variable interest rate the Loan proceeds dispersed by the lender are less than the face value of the note the Loan proceeds dispersed by A lender are less than the face value of the note discounting is selling a

note for an amount less than what is owed the terms of some Real Estate Loans provide an interest rate maybe increase or decrease depending on Money Market conditions we call this type of Loan a Loan which is

secured by a short-term land contract an interim Loan a variable interest rate Loan a fluctuating Market condition Loan variable interest rate Loan a variable interest rate Loan allows for increase or decrease in

the interest rate on the Loan based on Money Market conditions the security interest is best defined as the interest payments on a conventional Loan the use of stocks and Bonds or other Securities is collateral for

Loan against Real Property the Creditor’s interest in the Debtors property the interest on an assumed mortgage the Creditor’s interest in the Debtors property a Creditor maintains a

security interest in the property of the detour lenders know that the lower the Loan to value ratio the higher the amount Loaned appraised value Equity probability of default Equity Loan to value ratio is a ratio

of the percentage of the appraised value of the property that the lender will Loan the lower the ratio the higher the Equity