Real Estate Exam Scholar Quiz

What is a non-conforming loan also known as?

• A subprime loan

• A standard loan

• A conforming loan

• A jumbo loan

Who provides funds for FHA and VA loans?

• Private lenders

• Ginny May

• Fannie Mae

• Freddie Mac

Where is earnest money placed until a transaction is closed?

• The broker's bank account

• The seller's account

• None of these

• An escrow account

Which of the following is considered an encumbrance?

• All of these

• An easement

• A mortgage

• A lease

What is the process of paying off one loan with the proceeds from a new loan using the same property as security called?

• Loophole transaction

• Redouble transaction

• Refinance transaction

• Resettlement transaction

What is the date when a new monthly payment amount takes effect on an adjustable rate mortgage called?

• Rate change date

• Mortgage reset date

• Adjustment date

• Payment change date

What is the interest rate banks charge to their preferred customers called?

• Priority rate

• Graduated rate

• Preferred rate

• Prime rate

What limits the amount the interest rate can increase or decrease over the life of a mortgage?

• Fixed cap

• Life cap

• Mortgage cap

• Interest limit

Tags

CCSS.7.RP.A.3

What is an index used to determine interest rate changes for certain adjustable rate loans called?

• Interest index

• Adjustable index

• Treasury index

• Rate index

What is a written justification of the price paid for a property based on an analysis of comparable sales called?

• An appraisal

• A comp

• A similar analysis

• Neighborhood investigation