SC PSI Real Estate Exam Prep.

Which of the following describes the term appreciation? - Answer- An increase in the value of property When ownership of a mortgage is transferred from one company or individual to another, it is called: - Answer- An assignment A mortgage loan which requires the remaining balance be paid at a specific point in time is called a: - Answer- Balloon mortgage The following reason accounts for why bridge loans are not used much anymore: - Answer- More second mortgage lenders now will lend at a high to loan value. Sellers would rather accept offers from buyers who have already sold their property. A title which is free of liens or legal questions as to ownership of the property is called a_______________title. - Answer- Clear title What is the collateral in a home loan? - Answer- The property itself The adjustment date on adjustable rate mortgage is: - Answer- The date the interest rate changes What is the deposit made by potential buyer to show he is serious about buying a house called? - Answer- Earnest money deposit A right-of-way which gives persons other than the owner access to our over a property is known as an: - Answer- Easement Which best describes a subdivision? - Answer- A housing development created by dividing a tract of land into individual lots When someone contributes to the construction or rehabilitation of a property with labor or services rather than cash, that contribution is called: - Answer- Sweat equity A two-step mortgage is defined as: - Answer- An adjustable rate mortgage with one interest rate for the first five or seven years and a different rate for the remainder of the term A legal document evidencing a person's right to or ownership of a property is called a: - Answer- Title If you were buying a house that include furnishing, you would receive a written document transferring title to the personal property. This document is called a: - Answer- Bill of sale