Page 1 of 39
NMLS PRACTICE TEST EXAM NEWEST 2026
ACTUAL EXAM QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) ALL
ANSWERED {100 Q & A} ALREADY GRADED A+ |
BRAND NEW! | 100% GUARANTEED PASS
Which types of loans are meant for rural areas?
A.) VA
B.) FHA
C.) USDA
D.) RAL - ✔✔✔ Correct Answer > C.) USDA
The economic concept which states that a knowledgeable buyer
will pay no more for one property than they would pay for an
equally desirable comparable property is:
A.) Principle of Substitution
B.) Principle of Highest and Best Use
C.) Principle of Market Value
,Page 2 of 39
D.) Principle of Intelligent Purchases - ✔✔✔ Correct Answer > A.)
Principle of Substitution
The purchase price of a home is $200,000 and the loan amount is
$180,000. The borrower pays 6% interest with 1 discount point and
1 origination point. What is the cost of the points?
A.) $1,800
B.) $2,000
C.) $3,600
D.) $4,000 - ✔✔✔ Correct Answer > C.) $3,600
The key to this question is POINTS last time i accidentally added
the 6% interest. There is 2 points so $180,000 x .02 = $3,600
If the Gross Rent Multiplier (GRM) decreases, the property value:
A.) Increases
B.) Decreases
C.) Does not change
D.) Can increase or decrease - ✔✔✔ Correct Answer > B.) Decreases
,Page 3 of 39
What is the maximum allowable amount of VA seller
concessions?
A.) 2%
B.) 3%
C.) 4%
D.) 5% - ✔✔✔ Correct Answer > C.) 4%
When a property increases in value for any reason this is known
as:
A.) Acceleration
B.) Appreciation
C.) Accumulation
D.) Acclimation - ✔✔✔ Correct Answer > B.) Appreciation
Which appraisal approach is most suitable for an office building?
A.) Sales comparison approach
B.) Cost approach
C.) Income capitalization approach
, Page 4 of 39
D.) Tenant collection approach - ✔✔✔ Correct Answer > C.) Income
capitalization approach
Investopedia
The income approach is a real estate appraisal method that
allows investors to estimate the value of a property by taking the
net operating income of the rent collected and dividing it by the
capitalization rate.
Which of the following is incorrect regarding an adjustable-rate
mortgage?
A.) The index is fixed
B.) The margin is fixed
C.) There are rate caps on both the adjustment period and the life
of the loan
D.) LIBOR is a typical index used - ✔✔✔ Correct Answer > A.) The index
is fixed
Which of the following is NOT a fully amortized loan?
A.) Term mortgage
B.) Fixed-rate mortgage
NMLS PRACTICE TEST EXAM NEWEST 2026
ACTUAL EXAM QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) ALL
ANSWERED {100 Q & A} ALREADY GRADED A+ |
BRAND NEW! | 100% GUARANTEED PASS
Which types of loans are meant for rural areas?
A.) VA
B.) FHA
C.) USDA
D.) RAL - ✔✔✔ Correct Answer > C.) USDA
The economic concept which states that a knowledgeable buyer
will pay no more for one property than they would pay for an
equally desirable comparable property is:
A.) Principle of Substitution
B.) Principle of Highest and Best Use
C.) Principle of Market Value
,Page 2 of 39
D.) Principle of Intelligent Purchases - ✔✔✔ Correct Answer > A.)
Principle of Substitution
The purchase price of a home is $200,000 and the loan amount is
$180,000. The borrower pays 6% interest with 1 discount point and
1 origination point. What is the cost of the points?
A.) $1,800
B.) $2,000
C.) $3,600
D.) $4,000 - ✔✔✔ Correct Answer > C.) $3,600
The key to this question is POINTS last time i accidentally added
the 6% interest. There is 2 points so $180,000 x .02 = $3,600
If the Gross Rent Multiplier (GRM) decreases, the property value:
A.) Increases
B.) Decreases
C.) Does not change
D.) Can increase or decrease - ✔✔✔ Correct Answer > B.) Decreases
,Page 3 of 39
What is the maximum allowable amount of VA seller
concessions?
A.) 2%
B.) 3%
C.) 4%
D.) 5% - ✔✔✔ Correct Answer > C.) 4%
When a property increases in value for any reason this is known
as:
A.) Acceleration
B.) Appreciation
C.) Accumulation
D.) Acclimation - ✔✔✔ Correct Answer > B.) Appreciation
Which appraisal approach is most suitable for an office building?
A.) Sales comparison approach
B.) Cost approach
C.) Income capitalization approach
, Page 4 of 39
D.) Tenant collection approach - ✔✔✔ Correct Answer > C.) Income
capitalization approach
Investopedia
The income approach is a real estate appraisal method that
allows investors to estimate the value of a property by taking the
net operating income of the rent collected and dividing it by the
capitalization rate.
Which of the following is incorrect regarding an adjustable-rate
mortgage?
A.) The index is fixed
B.) The margin is fixed
C.) There are rate caps on both the adjustment period and the life
of the loan
D.) LIBOR is a typical index used - ✔✔✔ Correct Answer > A.) The index
is fixed
Which of the following is NOT a fully amortized loan?
A.) Term mortgage
B.) Fixed-rate mortgage
