2021 SOUTH CAROLINA PSI REAL ESTATE EXAM
PREP QUESTIONS & ANSWERS: STUDY GUIDE
100% CORRECT!
, 1.) Which of the following describes the time "appreciation"?
A. Kind words exposed to someone about something they did
B. An increase in the value of property
C. An item of value on buying an individual
D. None of the above - ANSWER Answer: B.
Appreciation is the increase in the value of a property due to changes in the market
conditions, inflation, or other causes.
2.) When ownership of a mortgage is transferred from one company or individual to
another, it is called
A. An assumption
B. An assignment
C. An assessment
D. All of the above - ANSWER Answer: B.
When ownership of a mortgage is transferred or assigned from one company or
individual to another, it is called an assignment.
3.) A mortgage loan which requires the remaining balance be paid at a specific point in
time is called a/an
A. Balloon mortgage
B. Early due mortgage
C. Mortgage of convenience
D. Promissory note - ANSWER Answer: A.
A mortgage loan that requires the remaining principal balance to be paid at a specific
point in time is a balloon mortgage.
4. The following reason accounts for why bridge loans are not used much anymore:
A. More second mortgage lenders now will lend at a high loan to value
B. Sellers would rather accept offers from Buyers who have already sold their property
C. Neither A or B
D. Both A and B - ANSWER D. Bridge loans are not used much anymore because more
second mortgage lenders now will lend at a high loan to value and sellers often prefer to
accept offers from buyers who have already sold their property.
PREP QUESTIONS & ANSWERS: STUDY GUIDE
100% CORRECT!
, 1.) Which of the following describes the time "appreciation"?
A. Kind words exposed to someone about something they did
B. An increase in the value of property
C. An item of value on buying an individual
D. None of the above - ANSWER Answer: B.
Appreciation is the increase in the value of a property due to changes in the market
conditions, inflation, or other causes.
2.) When ownership of a mortgage is transferred from one company or individual to
another, it is called
A. An assumption
B. An assignment
C. An assessment
D. All of the above - ANSWER Answer: B.
When ownership of a mortgage is transferred or assigned from one company or
individual to another, it is called an assignment.
3.) A mortgage loan which requires the remaining balance be paid at a specific point in
time is called a/an
A. Balloon mortgage
B. Early due mortgage
C. Mortgage of convenience
D. Promissory note - ANSWER Answer: A.
A mortgage loan that requires the remaining principal balance to be paid at a specific
point in time is a balloon mortgage.
4. The following reason accounts for why bridge loans are not used much anymore:
A. More second mortgage lenders now will lend at a high loan to value
B. Sellers would rather accept offers from Buyers who have already sold their property
C. Neither A or B
D. Both A and B - ANSWER D. Bridge loans are not used much anymore because more
second mortgage lenders now will lend at a high loan to value and sellers often prefer to
accept offers from buyers who have already sold their property.
