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Real Estate Finance #1

Total questions: 10

Worksheet time: 10mins

Name
Class
Date
1.

A buyer will loan from the bank for the purpose of a house. The amount of difference between what the total price will be and the amount he can boroow is reffered to as:

a)

equity

b)

reservation deposit

c)

downpayment

d)

loan balance

2.

In computing the amortization factor on financing of real estate sales, the factors will be based on the following

a)

capacity of the buyer

b)

number of years to pay

c)

Interest rate and term of payment

d)

interest

3.

It is not considered a sale on financing or installment in the purchase of a lot

a)

Pagibig financing

b)

Spot cash

c)

Bank financing

d)

Lending investor's financing

4.

The payment to be made monthly by the lot buyer on installment is generally referred to as

a)

monthly amortization

b)

monthly payments

c)

amortization schedule

d)

financing payments

5.

If financing was made in the amount of 18% per annum, what would be the monthly interest rate to be applied on a 24 months payment scheme

a)

1.0%

b)

1.5%

c)

2.0%

d)

2.5%

6.

The maximum age limit for the maturity of payment of the loan from Pagibig financing for a housing unit is

a)

50

b)

60

c)

65

d)

70

7.

An additional requirement in obtaining a loan which is to pay off the loan or outstanding obligation upon the death of borrower

a)

Loan assurance agreement

b)

Mortgage Redemption insurance

c)

Housing financing insurance

d)

Mortgage loan insurance

8.

A payment scheme where the buyer of a condo unit pays the total price within a short period of time without interest is referred to as

a)

short-term financing

b)

deferred cash payment

c)

discounted cash payment

d)

deferred financing scheme

9.

Anna was paying a monthly amortization of Php54,100 at 21% interest per annum. if the amortization factor is 0.02705, how much is the amount being financed?

a)

1,000,000.00

b)

1,500,000.00

c)

2,000,000.00

d)

2,500,000.00

10.

In a housing financing scheme based on diminishing balance, the interest in the payments

a)

increases while the payment of the principal decreases

b)

decreases while the payment of principal increases

c)

remain constant for the term of the loan

d)

remain constant but the principa decrease