Georgia real estate salesperson
PSI exam with answers
straight note - ANSWER ✔✔promissory note principal do
in one lump sum at the end of the loan term
installment note - ANSWER ✔✔promissory note with
specific principal and interest
principle of Leverage - ANSWER ✔✔business tool to earn
profit like a landlord with rent
FICO - ANSWER ✔✔most commonly used credit rating
system
negative amortization - ANSWER ✔✔payment is less than
interest amount owing increases
equity - ANSWER ✔✔market value minus amount of
existing liens
Equitable Title - ANSWER ✔✔right to obtain full ownership
of the property right to use
,legal title - ANSWER ✔✔actual full ownership right to sell
Regulation Z - ANSWER ✔✔truth in lending law the
regulations provided lenders and those who help arrange
credit for borrower specific guidelines to follow in
disclosing to borrowers their exact cost of credit must
State APR
Federal Equal Credit Opportunity Act - ANSWER
✔✔prohibits discrimination in lending because of race
religion sex national origin marital status or age
truth in lending Tila - ANSWER ✔✔promotes informed use
of credit
interest only loan - ANSWER ✔✔interest-only is paid in
early years a fully amortized loan is acquired at a specific
time mostly the same as a straight term
buy Downs - ANSWER ✔✔a builder buys down the loan
2% in the first year 1% in the second the Builder pays the
lender to make up the difference
,budget mortgage loan Piti - ANSWER ✔✔principal interest
taxes and insurance the lender requires 1/12 of the taxes
and insurance to be included in the payment
purchase money mortgage loan - ANSWER
✔✔Sutherlands money to buyer seller keeps deed until
debt is paid
wrap-around mortgage loan - ANSWER ✔✔a second or
Junior mortgage includes balance of First Mortgage plus
additional financing needed rarely made
reverse annuity mortgage Ram - ANSWER ✔✔reverse
mortgage primarily for the elderly or retired
open-end mortgage loan - ANSWER ✔✔equity loan a line
of credit secured by a mortgage percent of equity
blanket mortgage loan - ANSWER ✔✔usually for financing
a subdivision
private mortgage insurance PMI - ANSWER ✔✔if the
borrower puts less than 20% down the lender might
require
, PMI - ANSWER ✔✔may possibly be eliminated when the
loan-to-value is reduced to below 80% of the original
purchase price or a new appraisal if a borrower does not
request cancellation A lender will automatically eliminate
once the equity reaches 22%
FHA mortgage loans federal housing Administration -
ANSWER ✔✔administered by the HUD Federal
Department of Housing and Urban Development does not
make loans to cover this cost mortgage insurance is
charged at the origination of the loan approved private
lenders make these loans and approved appraiser must
have praised the property and identify any repairs to be
made before issuing a conditional commitment
graduated payment mortgage GPM - ANSWER ✔✔monthly
payments are reduced in early years in exchange for
higher payments later in the anticipation of increased
future income payments increase over time
non-judicial foreclosure - ANSWER ✔✔used in Georgia
Linder can take the house without going to court
strict foreclosure - ANSWER ✔✔Linder may I ask the court
to allow them to take title without a foreclosure sale but
for a period of time established by the court for the
borrower to repay the loan
PSI exam with answers
straight note - ANSWER ✔✔promissory note principal do
in one lump sum at the end of the loan term
installment note - ANSWER ✔✔promissory note with
specific principal and interest
principle of Leverage - ANSWER ✔✔business tool to earn
profit like a landlord with rent
FICO - ANSWER ✔✔most commonly used credit rating
system
negative amortization - ANSWER ✔✔payment is less than
interest amount owing increases
equity - ANSWER ✔✔market value minus amount of
existing liens
Equitable Title - ANSWER ✔✔right to obtain full ownership
of the property right to use
,legal title - ANSWER ✔✔actual full ownership right to sell
Regulation Z - ANSWER ✔✔truth in lending law the
regulations provided lenders and those who help arrange
credit for borrower specific guidelines to follow in
disclosing to borrowers their exact cost of credit must
State APR
Federal Equal Credit Opportunity Act - ANSWER
✔✔prohibits discrimination in lending because of race
religion sex national origin marital status or age
truth in lending Tila - ANSWER ✔✔promotes informed use
of credit
interest only loan - ANSWER ✔✔interest-only is paid in
early years a fully amortized loan is acquired at a specific
time mostly the same as a straight term
buy Downs - ANSWER ✔✔a builder buys down the loan
2% in the first year 1% in the second the Builder pays the
lender to make up the difference
,budget mortgage loan Piti - ANSWER ✔✔principal interest
taxes and insurance the lender requires 1/12 of the taxes
and insurance to be included in the payment
purchase money mortgage loan - ANSWER
✔✔Sutherlands money to buyer seller keeps deed until
debt is paid
wrap-around mortgage loan - ANSWER ✔✔a second or
Junior mortgage includes balance of First Mortgage plus
additional financing needed rarely made
reverse annuity mortgage Ram - ANSWER ✔✔reverse
mortgage primarily for the elderly or retired
open-end mortgage loan - ANSWER ✔✔equity loan a line
of credit secured by a mortgage percent of equity
blanket mortgage loan - ANSWER ✔✔usually for financing
a subdivision
private mortgage insurance PMI - ANSWER ✔✔if the
borrower puts less than 20% down the lender might
require
, PMI - ANSWER ✔✔may possibly be eliminated when the
loan-to-value is reduced to below 80% of the original
purchase price or a new appraisal if a borrower does not
request cancellation A lender will automatically eliminate
once the equity reaches 22%
FHA mortgage loans federal housing Administration -
ANSWER ✔✔administered by the HUD Federal
Department of Housing and Urban Development does not
make loans to cover this cost mortgage insurance is
charged at the origination of the loan approved private
lenders make these loans and approved appraiser must
have praised the property and identify any repairs to be
made before issuing a conditional commitment
graduated payment mortgage GPM - ANSWER ✔✔monthly
payments are reduced in early years in exchange for
higher payments later in the anticipation of increased
future income payments increase over time
non-judicial foreclosure - ANSWER ✔✔used in Georgia
Linder can take the house without going to court
strict foreclosure - ANSWER ✔✔Linder may I ask the court
to allow them to take title without a foreclosure sale but
for a period of time established by the court for the
borrower to repay the loan
