Georgia real estate salesperson PSI EXAM| FREQUENTLY MOST TESTED
QUESTIONS AND VERIFIED SOLUTIONS @ 2026 || 2027 (Actual Exam)
Questions with verified 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
,Georgia real estate salesperson PSI EXAM| FREQUENTLY MOST TESTED
QUESTIONS AND VERIFIED SOLUTIONS @ 2026 || 2027 (Actual Exam)
Questions with verified Answers
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
,Georgia real estate salesperson PSI EXAM| FREQUENTLY MOST TESTED
QUESTIONS AND VERIFIED SOLUTIONS @ 2026 || 2027 (Actual Exam)
Questions with verified Answers
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
lien theory states - (ANSWER)the mortgage loan only creates the lien it does not convey title the lender
has a monetary claim when the loan is repaid the lien is removed by recording a satisfaction non-judicial
foreclosure
attorney - (ANSWER)legal advice represents the lender at closing
VA mortgage - (ANSWER)lower down payment or even 0% down only one at a time
Freddie Mac - (ANSWER)secondary mortgage market for FHA and VA backed by mortgage pools investors
have less risk than buying one loan
alienation clause - (ANSWER)due on sale Clause the entire loan balance is due when sold or exchanged
right of first refusal - (ANSWER)if landlord decides to sell it must be offered to the tenant before anyone
else
option to buy - (ANSWER)tenant gets possession of property in option to buy at a set price with a
designated period of time not a lease purchase
, Georgia real estate salesperson PSI EXAM| FREQUENTLY MOST TESTED
QUESTIONS AND VERIFIED SOLUTIONS @ 2026 || 2027 (Actual Exam)
Questions with verified Answers
gross lease - (ANSWER)flat leaf straight lease tenant pays fixed amount at specified intervals landlord
pays taxes Insurance repairs and maintenance common for residential rentals
net lease - (ANSWER)triple net lease tenant pays fixed rent plus taxes Insurance maintenance and repairs
common for commercial and Industrial
graduated leases - (ANSWER)includes an escalator Clause to protect landlord from rising cost and
inflation
Step Up lease - (ANSWER)rent increases in predetermined amounts example tenant pays 800 in the first
year 900 in the second and 1000 in the third
index lease - (ANSWER)periodic rent adjustment based on changes in the economic index such as prime
lending rate or consumer Price Index
escalator lease - (ANSWER)rent increases are tied to operating costs
reappraisal lease - (ANSWER)property will be reappraised at certain intervals to protect landlord from
falling behind market value
percentage lease - (ANSWER)leasing retail space or any tenant whose business depends on sales volume
it provides the tenant pay a fixed minimum or base rent plus a percent of either gross sales gross profit
or net profit
ground lease - (ANSWER)rental of unimproved land with tenant having permission to construct a
building or make other improvements at the tenants expense commonly ground leases are for 50 years
or more
stale leaseback - (ANSWER)property owner sells property with an agreement to lease it back typically for
commercial or industrial properties
QUESTIONS AND VERIFIED SOLUTIONS @ 2026 || 2027 (Actual Exam)
Questions with verified 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
,Georgia real estate salesperson PSI EXAM| FREQUENTLY MOST TESTED
QUESTIONS AND VERIFIED SOLUTIONS @ 2026 || 2027 (Actual Exam)
Questions with verified Answers
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
,Georgia real estate salesperson PSI EXAM| FREQUENTLY MOST TESTED
QUESTIONS AND VERIFIED SOLUTIONS @ 2026 || 2027 (Actual Exam)
Questions with verified Answers
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
lien theory states - (ANSWER)the mortgage loan only creates the lien it does not convey title the lender
has a monetary claim when the loan is repaid the lien is removed by recording a satisfaction non-judicial
foreclosure
attorney - (ANSWER)legal advice represents the lender at closing
VA mortgage - (ANSWER)lower down payment or even 0% down only one at a time
Freddie Mac - (ANSWER)secondary mortgage market for FHA and VA backed by mortgage pools investors
have less risk than buying one loan
alienation clause - (ANSWER)due on sale Clause the entire loan balance is due when sold or exchanged
right of first refusal - (ANSWER)if landlord decides to sell it must be offered to the tenant before anyone
else
option to buy - (ANSWER)tenant gets possession of property in option to buy at a set price with a
designated period of time not a lease purchase
, Georgia real estate salesperson PSI EXAM| FREQUENTLY MOST TESTED
QUESTIONS AND VERIFIED SOLUTIONS @ 2026 || 2027 (Actual Exam)
Questions with verified Answers
gross lease - (ANSWER)flat leaf straight lease tenant pays fixed amount at specified intervals landlord
pays taxes Insurance repairs and maintenance common for residential rentals
net lease - (ANSWER)triple net lease tenant pays fixed rent plus taxes Insurance maintenance and repairs
common for commercial and Industrial
graduated leases - (ANSWER)includes an escalator Clause to protect landlord from rising cost and
inflation
Step Up lease - (ANSWER)rent increases in predetermined amounts example tenant pays 800 in the first
year 900 in the second and 1000 in the third
index lease - (ANSWER)periodic rent adjustment based on changes in the economic index such as prime
lending rate or consumer Price Index
escalator lease - (ANSWER)rent increases are tied to operating costs
reappraisal lease - (ANSWER)property will be reappraised at certain intervals to protect landlord from
falling behind market value
percentage lease - (ANSWER)leasing retail space or any tenant whose business depends on sales volume
it provides the tenant pay a fixed minimum or base rent plus a percent of either gross sales gross profit
or net profit
ground lease - (ANSWER)rental of unimproved land with tenant having permission to construct a
building or make other improvements at the tenants expense commonly ground leases are for 50 years
or more
stale leaseback - (ANSWER)property owner sells property with an agreement to lease it back typically for
commercial or industrial properties
