CALIFORNIA REAL ESTATE EXAM 2024/2025 NEWEST!! ACTUAL
COMPLETE 500 QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES| ALREADY GRADED A+.
Renata has a home loan for $150,000 at 7.5% interest for 30 years
and her payment is $987 month (including principal and interest).
What is the principal balance after Renata has made one payment
on her loan? After two payments? -
ANSWER -$150,000 x 7.5% interest = $11,250 annual interest
amount
$11,250/12= $937.50 interest this month
$987 (payment) - $937.50 = $49.50 principal paid
$150,000 - $49.50 = 149,950.50 (principal balance after 1st month)
149,950.50 (new principal balance) x .075 interest=11,246.29
annual interest
amount
11,246.29/12 = 937.19 interest this
month
$987 (payment) - 937.19 = 49.81
principal paid
149,950.50 - 49.81 = 149,900.70 (principal balance after
2nd month)
,The Logans are in their seventies with a very nice home. They
paid off their mortgage 25 years ago. Now they need money for
healthcare costs. He has turned to his home to supplement his
monthly income in order to keep his wife at home. Which type of
loan applies to the Logan's situation? - ANSWER -Reverse
Annuity Mortgage (RAM): Homeowner receives monthly
payments based on accumulated equity rather than a lump sum.
Loan must be repaid upon the death of the owner or sale of the
property. Most advantageous for senior citizens who own their
own home- house rich/cash poor.
What is the major difference between a VA loan and a FHA loan?
- ANSWER -
FHA insures repayment of the loan. VA guarantees
repayment of the loan.
Gerald, a sergeant in the Marine Corps, is getting married and
wants to purchase a home. How does he begin the process of
getting a VA loan? What follows? -
ANSWER -Gerald must first apply for a Certificate of Eligibility to
obtain a VA loan. The home must qualify with an appraisal and be
issued a Certificate of Reasonable Valule.
Jeanne and Mark are buying a home. They've been told their
mortgage payment will be $1,072 per month. There's also an
additional amount of $336.72 being added to the monthly
,payment, bringing their total to $1,407.62. It was explained the
additional $336.72 is to cover insurance and property taxes.
Which loan definition applies? - ANSWER -Most lenders require
an impound account using the buyer's money to cover future
payments of insurance and taxes. Sometimes this is referred to
as the buyer's escrow.
Which of the major warehousing agencies in the Secondary
Market are regulated
by a government agency? - ANSWER -Federal National
Mortgage Association
(Fannie Mae), Government National Mortgage Association
(Ginnie Mae), Federal
Home Loan Mortgage Corporation
(Freddie Mac)
Bruce, a private in the army, has applied for his Certificate of
Eligibility and has been approved. He wants to purchase a condo
for himself. What's the maximum amount lenders will loan Bruce,
based on his veteran status? - ANSWER -A veteran's basic
entitlement is $104,250. Lenders generally lend up to four times
the available entitlement without a down payment. There is no
maximum amount, but generally lenders limit VA loans to
$417,000.
, What does the term "turnover" reference in a business
opportunity? - ANSWER -
The number of times the inventory is
sold per year.
Tucker, a licensee, has been instrumental in the sale of a
nightclub to a group of investors. He has guided the buyers
every step of the way in obtaining this new business
opportunity. What government agencies are also in need of
notification by the investors concerning their new business? -
ANSWER -IRS. State Board of Equalization.
How is goodwill protected in business opportunity transactions?
- ANSWER -The
goodwill of a business has monetary value, which is
protected by law.
Under California Finance Code, what is defined as consumer
credit transaction that is secured by real property located in
California, which is used, or intended to be used or occupied, as
the principal dwelling of the consumer? - ANSWER Consumer
loan
In some counties, certain funds are collected and then distributed
to be used only for the exclusive purpose of deterring,
COMPLETE 500 QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES| ALREADY GRADED A+.
Renata has a home loan for $150,000 at 7.5% interest for 30 years
and her payment is $987 month (including principal and interest).
What is the principal balance after Renata has made one payment
on her loan? After two payments? -
ANSWER -$150,000 x 7.5% interest = $11,250 annual interest
amount
$11,250/12= $937.50 interest this month
$987 (payment) - $937.50 = $49.50 principal paid
$150,000 - $49.50 = 149,950.50 (principal balance after 1st month)
149,950.50 (new principal balance) x .075 interest=11,246.29
annual interest
amount
11,246.29/12 = 937.19 interest this
month
$987 (payment) - 937.19 = 49.81
principal paid
149,950.50 - 49.81 = 149,900.70 (principal balance after
2nd month)
,The Logans are in their seventies with a very nice home. They
paid off their mortgage 25 years ago. Now they need money for
healthcare costs. He has turned to his home to supplement his
monthly income in order to keep his wife at home. Which type of
loan applies to the Logan's situation? - ANSWER -Reverse
Annuity Mortgage (RAM): Homeowner receives monthly
payments based on accumulated equity rather than a lump sum.
Loan must be repaid upon the death of the owner or sale of the
property. Most advantageous for senior citizens who own their
own home- house rich/cash poor.
What is the major difference between a VA loan and a FHA loan?
- ANSWER -
FHA insures repayment of the loan. VA guarantees
repayment of the loan.
Gerald, a sergeant in the Marine Corps, is getting married and
wants to purchase a home. How does he begin the process of
getting a VA loan? What follows? -
ANSWER -Gerald must first apply for a Certificate of Eligibility to
obtain a VA loan. The home must qualify with an appraisal and be
issued a Certificate of Reasonable Valule.
Jeanne and Mark are buying a home. They've been told their
mortgage payment will be $1,072 per month. There's also an
additional amount of $336.72 being added to the monthly
,payment, bringing their total to $1,407.62. It was explained the
additional $336.72 is to cover insurance and property taxes.
Which loan definition applies? - ANSWER -Most lenders require
an impound account using the buyer's money to cover future
payments of insurance and taxes. Sometimes this is referred to
as the buyer's escrow.
Which of the major warehousing agencies in the Secondary
Market are regulated
by a government agency? - ANSWER -Federal National
Mortgage Association
(Fannie Mae), Government National Mortgage Association
(Ginnie Mae), Federal
Home Loan Mortgage Corporation
(Freddie Mac)
Bruce, a private in the army, has applied for his Certificate of
Eligibility and has been approved. He wants to purchase a condo
for himself. What's the maximum amount lenders will loan Bruce,
based on his veteran status? - ANSWER -A veteran's basic
entitlement is $104,250. Lenders generally lend up to four times
the available entitlement without a down payment. There is no
maximum amount, but generally lenders limit VA loans to
$417,000.
, What does the term "turnover" reference in a business
opportunity? - ANSWER -
The number of times the inventory is
sold per year.
Tucker, a licensee, has been instrumental in the sale of a
nightclub to a group of investors. He has guided the buyers
every step of the way in obtaining this new business
opportunity. What government agencies are also in need of
notification by the investors concerning their new business? -
ANSWER -IRS. State Board of Equalization.
How is goodwill protected in business opportunity transactions?
- ANSWER -The
goodwill of a business has monetary value, which is
protected by law.
Under California Finance Code, what is defined as consumer
credit transaction that is secured by real property located in
California, which is used, or intended to be used or occupied, as
the principal dwelling of the consumer? - ANSWER Consumer
loan
In some counties, certain funds are collected and then distributed
to be used only for the exclusive purpose of deterring,
