MCKISSOCK APPRAISAL PRINCIPLES EVALUATION EXAM
2025/2026 QUESTIONS WITH ANSWERS MARKED A+
✔✔guaranteed mortgage - ✔✔a party other than the borrower assures payment in the
event of default
✔✔insured mortgage - ✔✔a party other than the borrower assures payment on default
by the mortgagor in return for the payment of a premium
✔✔first mortgage - ✔✔has priority over all other mortgage liens on a property
✔✔junior lien - ✔✔lien placed on property after a previous lien has been made and
recorded
✔✔amoritization - ✔✔process of retiring a debt or recovering a capital investment
typically through scheduled systematic repayment of the principal
✔✔fixed rate mortgage - ✔✔A mortgage in which the interest rate does not change
during the entire term of the loan.
✔✔balloon mortgage - ✔✔one that is not fully amortized at maturity and thus requires a
lump sum or balloon payment of the outstanding balance
✔✔graduated-payment mortgage (GPM) - ✔✔debt secured by real property in which
mortgage payments are usually projected to match increases in the borrower's income
✔✔adjustable rate mortgages - ✔✔debt secured by real property with an interest rate
that may move up or down
✔✔reverse mortgage - ✔✔type of mortgage whereby age-qualified homeowners
systematically borrow against the equity in their homes, receiving regular (usually
monthly) payments from the lender
✔✔discount points - ✔✔percentage of the loan amount that a lender charges a
borrower for making a loan
✔✔utility - ✔✔ability of a product to satisfy a human want need or desire; the ability of a
property or building to be useful and to perform the function for which it is intended
according to current market taste and standards
✔✔scarcity - ✔✔present or anticipated undersupply of an item relative to the demand
for it
, ✔✔effective purchasing power - ✔✔ability of an individual or group to participate in a
market
✔✔external market forces - ✔✔planning,zoning,building codes, envt restrictions, taxes,
utilities, transportation, education, cultural, parks and rec, police, fire protection, public
safety
✔✔National Oceanic and Atmospheric Administration - ✔✔charged with monitoring
coastal habitats, such as estuaries and reefs. It also monitors development, water and
sediment contamination, water diversion for industrial, agricultural, sedimentation, and
dredging and filling activities.
✔✔US Army Corps of Engineers - ✔✔mission is planning, designing, building and
operating water resources and other civil works projects including:
Navigation,
Flood control,
Environmental protection,
Disaster response,
Ecosystem restoration,
Wetlands and waterways , regulation & permitting
✔✔environmental protection agency - ✔✔Developing and enforcing regulations
Offering financial assistance
Performing environmental research
Sponsoring voluntary programs and partnerships
Furthering environmental education
Publishing information
✔✔economic forces - ✔✔national economy. consumer price index, IR, etc
✔✔arms length transaction - ✔✔transaction between unrelated parties who are each
acting in their own best interest
✔✔exposure time - ✔✔the time a property is on the market
✔✔value in exchange - ✔✔value that reflects the amount that can be obtained for an
asset if exchanged between parties
✔✔value in use - ✔✔value of property assuming a specific use which may or may not
be the highest and best use at the appraisal time
✔✔investment value - ✔✔value of a property interest to a particular investor or class of
investors based on the investor's specific requirements
✔✔insurable value - ✔✔value for insurance purposes
2025/2026 QUESTIONS WITH ANSWERS MARKED A+
✔✔guaranteed mortgage - ✔✔a party other than the borrower assures payment in the
event of default
✔✔insured mortgage - ✔✔a party other than the borrower assures payment on default
by the mortgagor in return for the payment of a premium
✔✔first mortgage - ✔✔has priority over all other mortgage liens on a property
✔✔junior lien - ✔✔lien placed on property after a previous lien has been made and
recorded
✔✔amoritization - ✔✔process of retiring a debt or recovering a capital investment
typically through scheduled systematic repayment of the principal
✔✔fixed rate mortgage - ✔✔A mortgage in which the interest rate does not change
during the entire term of the loan.
✔✔balloon mortgage - ✔✔one that is not fully amortized at maturity and thus requires a
lump sum or balloon payment of the outstanding balance
✔✔graduated-payment mortgage (GPM) - ✔✔debt secured by real property in which
mortgage payments are usually projected to match increases in the borrower's income
✔✔adjustable rate mortgages - ✔✔debt secured by real property with an interest rate
that may move up or down
✔✔reverse mortgage - ✔✔type of mortgage whereby age-qualified homeowners
systematically borrow against the equity in their homes, receiving regular (usually
monthly) payments from the lender
✔✔discount points - ✔✔percentage of the loan amount that a lender charges a
borrower for making a loan
✔✔utility - ✔✔ability of a product to satisfy a human want need or desire; the ability of a
property or building to be useful and to perform the function for which it is intended
according to current market taste and standards
✔✔scarcity - ✔✔present or anticipated undersupply of an item relative to the demand
for it
, ✔✔effective purchasing power - ✔✔ability of an individual or group to participate in a
market
✔✔external market forces - ✔✔planning,zoning,building codes, envt restrictions, taxes,
utilities, transportation, education, cultural, parks and rec, police, fire protection, public
safety
✔✔National Oceanic and Atmospheric Administration - ✔✔charged with monitoring
coastal habitats, such as estuaries and reefs. It also monitors development, water and
sediment contamination, water diversion for industrial, agricultural, sedimentation, and
dredging and filling activities.
✔✔US Army Corps of Engineers - ✔✔mission is planning, designing, building and
operating water resources and other civil works projects including:
Navigation,
Flood control,
Environmental protection,
Disaster response,
Ecosystem restoration,
Wetlands and waterways , regulation & permitting
✔✔environmental protection agency - ✔✔Developing and enforcing regulations
Offering financial assistance
Performing environmental research
Sponsoring voluntary programs and partnerships
Furthering environmental education
Publishing information
✔✔economic forces - ✔✔national economy. consumer price index, IR, etc
✔✔arms length transaction - ✔✔transaction between unrelated parties who are each
acting in their own best interest
✔✔exposure time - ✔✔the time a property is on the market
✔✔value in exchange - ✔✔value that reflects the amount that can be obtained for an
asset if exchanged between parties
✔✔value in use - ✔✔value of property assuming a specific use which may or may not
be the highest and best use at the appraisal time
✔✔investment value - ✔✔value of a property interest to a particular investor or class of
investors based on the investor's specific requirements
✔✔insurable value - ✔✔value for insurance purposes
