NMLS Practice Test Hard Questions With
Correct Answers 2024
A udiscount upoint uis uBEST udescribed uas ua ucharge uthe uborrower upays uto:
A.) uA ulender uto udecrease uthe uinterest urate uon uthe umortgage uloan
B.) uA umortgage ubroker uat uthe utime uof uapplication uto uobtain ua ufavorable urate
C.) uThe useller uas upart uof uthe uclosing ucosts uof ua uloan
D.) uA ulender uto uensure uagainst uforeclosure u- ucorrect uanswer.A.) uA ulender uto udecrease
uthe uinterest urate uon uthe umortgage uloan
A ubuyer uhas umade uan uearnest umoney upayment uof u$5,000. uThe ubuyer upays uan
uadditional u$2,000 uin uoption umoney uto ube ucredited uat uclosing uon uproperty uwith usale uprice
uof u$160,000. uIf uthe urequired udown upayment uis u20%, uhow umuch uadditional umoney uwill
uthe ubuyer uneed uto uprovide utoward uthe udown upayment uat uclosing?
A.) u$32,000
B.) u$27,000
C.) u$30,000
D.) u$25,000 u- ucorrect uanswer.D.) u$25,000
$160,000 ux u.20 u(20%) u= u32000 u- u$7,000 u= u$25,000
If uan uapplicant uworks u40 uhours uevery uweek uand uis upaid u$13.52 uper uhour, uwhat uis uthe
uapplicant's umonthly uincome?
A.) u$2,163.20
B.) u$2,343.47
C.) u$2,379.52
D.) u$2,487.68 u- ucorrect uanswer.B.) u$2,343.47
$13.52x u40 uhours u= u$540.8 ux u52 uweeks u= u$28,121.6 uannually u/12month u= u$2,343.47
uMonthly uincome
,The urequirement ufor uprivate umortgage uinsurance uis ugenerally uis ucontinued uwhen uthe
uloan-to-value uratio ufalls ubelow:
A.) u20%
B.) u50%
C.) u80%
D.) u90% u- ucorrect uanswer.C.) u80%
Which uof uthe ufollowing udocuments uitemizes uall usettlement ucosts uincluding ulender
ucharges?
A.) uAgreement uof usale
B.) uHUD-1/closing uDisclosure
C.) uForm u1003
D.) uForbearance uagreement u- ucorrect uanswer.B.) uHUD-1/closing uDisclosure
According uto uthe uTruth-in-Lending uAct u(TILA), uthe uterm u"refinance" uapplies uto
A.) uA uchange uin ua upayment uschedule
B.) uA ureduction uin uannual upercentage urate
C.) uThe urenewal uof ua usingle upayment uobligation uwith uno uchange uin uthe uoriginal uterms
D.) uThe usatisfaction uof uan uexisting uobligation uand uits ureplacement uby ua unew uobligation u-
ucorrect uanswer.D.) uThe usatisfaction uof uan uexisting uobligation uand uits ureplacement uby ua
unew uobligation
What udoes ua uloan uoriginator uuse uto udetermine uthe uestimated uvalue uof ua uproperty ubased
uon uan uanalytical ucomparison uof usimilar uproperty usales?
A.) uAn uappraisal
B.) uA umarket usurvey
C.) uAn uarea usurvey
D.) uA uCost-benefit uanalysis u- ucorrect uanswer.A.) uAn uappraisal
Which uof uthe ufollowing umethods uof udisclosure udoes uNOT umeet uthe urequirements uof
uEqual uCredit uOpportunity uAct u(ECOA)?
A.) uE-mail
B.) uMailed uletter
C.) uTelephone
D.) uFaxed uletter u- ucorrect uanswer.C.) uTelephone
Term u"20 ubasis upoints" uexpressed uas ua upercentage uis:
A.) u0.2%
B.) u0.20%
C.) u2.00%
, D.) u20.00% u- ucorrect uanswer.B.) u0.20%
one uhundredth uof uone upercent, uused uchiefly uin uexpressing udifferences uof uinterest urates.
u0.01
so u0.01 ux20 u= u0.2
According uto uthe uTruth-in-Lending uAct u(TILA), uwhich uif uthe ufollowing ufees uis
uEXCLUDED ufrom uthe ucalculation uof uthe uannual upercentage urate?
A.) uHazard uinsurance
B.) uWire utransfer
C.) uPrepaid uinterest
D.) uMortgage uinsurance upremiums u- ucorrect uanswer.A.) uHazard uinsurance
FHA uloans uare:
A.) uPartially uguaranteed
B.) u100% uinsured
C.) uExempt
D.) uEntitled u- ucorrect uanswer.A.) uPartially uguaranteed
The ulate ufee ufor ua uconventional uloan uis:
A.) u3% uof uprinciple uand uinterest
B.) u4% uof uprinciple uand uinterest
C.) u5% uof uprinciple uand uinterest
D.) u10% uof uprinciple uand uinterest u- ucorrect uanswer.C.) u5% uof uprinciple uand uinterest
A ufunding ufee uif urequired ufor ua:
A.) uFHA uloan
B.) uVA uloan
C.) uJumbo uloan
D.) uConventional uloan u- ucorrect uanswer.B.) uVA uloan
A uMortgage uInsurance uPremium uis urequired uon:
A.) uFHA uloan
B.) uVA uloan
C.) uJumbo uloan
D.) uConventional uloan u- ucorrect uanswer.A.) uFHA uloan
The umortgagee uis uthe:
A.) uBorrower
Correct Answers 2024
A udiscount upoint uis uBEST udescribed uas ua ucharge uthe uborrower upays uto:
A.) uA ulender uto udecrease uthe uinterest urate uon uthe umortgage uloan
B.) uA umortgage ubroker uat uthe utime uof uapplication uto uobtain ua ufavorable urate
C.) uThe useller uas upart uof uthe uclosing ucosts uof ua uloan
D.) uA ulender uto uensure uagainst uforeclosure u- ucorrect uanswer.A.) uA ulender uto udecrease
uthe uinterest urate uon uthe umortgage uloan
A ubuyer uhas umade uan uearnest umoney upayment uof u$5,000. uThe ubuyer upays uan
uadditional u$2,000 uin uoption umoney uto ube ucredited uat uclosing uon uproperty uwith usale uprice
uof u$160,000. uIf uthe urequired udown upayment uis u20%, uhow umuch uadditional umoney uwill
uthe ubuyer uneed uto uprovide utoward uthe udown upayment uat uclosing?
A.) u$32,000
B.) u$27,000
C.) u$30,000
D.) u$25,000 u- ucorrect uanswer.D.) u$25,000
$160,000 ux u.20 u(20%) u= u32000 u- u$7,000 u= u$25,000
If uan uapplicant uworks u40 uhours uevery uweek uand uis upaid u$13.52 uper uhour, uwhat uis uthe
uapplicant's umonthly uincome?
A.) u$2,163.20
B.) u$2,343.47
C.) u$2,379.52
D.) u$2,487.68 u- ucorrect uanswer.B.) u$2,343.47
$13.52x u40 uhours u= u$540.8 ux u52 uweeks u= u$28,121.6 uannually u/12month u= u$2,343.47
uMonthly uincome
,The urequirement ufor uprivate umortgage uinsurance uis ugenerally uis ucontinued uwhen uthe
uloan-to-value uratio ufalls ubelow:
A.) u20%
B.) u50%
C.) u80%
D.) u90% u- ucorrect uanswer.C.) u80%
Which uof uthe ufollowing udocuments uitemizes uall usettlement ucosts uincluding ulender
ucharges?
A.) uAgreement uof usale
B.) uHUD-1/closing uDisclosure
C.) uForm u1003
D.) uForbearance uagreement u- ucorrect uanswer.B.) uHUD-1/closing uDisclosure
According uto uthe uTruth-in-Lending uAct u(TILA), uthe uterm u"refinance" uapplies uto
A.) uA uchange uin ua upayment uschedule
B.) uA ureduction uin uannual upercentage urate
C.) uThe urenewal uof ua usingle upayment uobligation uwith uno uchange uin uthe uoriginal uterms
D.) uThe usatisfaction uof uan uexisting uobligation uand uits ureplacement uby ua unew uobligation u-
ucorrect uanswer.D.) uThe usatisfaction uof uan uexisting uobligation uand uits ureplacement uby ua
unew uobligation
What udoes ua uloan uoriginator uuse uto udetermine uthe uestimated uvalue uof ua uproperty ubased
uon uan uanalytical ucomparison uof usimilar uproperty usales?
A.) uAn uappraisal
B.) uA umarket usurvey
C.) uAn uarea usurvey
D.) uA uCost-benefit uanalysis u- ucorrect uanswer.A.) uAn uappraisal
Which uof uthe ufollowing umethods uof udisclosure udoes uNOT umeet uthe urequirements uof
uEqual uCredit uOpportunity uAct u(ECOA)?
A.) uE-mail
B.) uMailed uletter
C.) uTelephone
D.) uFaxed uletter u- ucorrect uanswer.C.) uTelephone
Term u"20 ubasis upoints" uexpressed uas ua upercentage uis:
A.) u0.2%
B.) u0.20%
C.) u2.00%
, D.) u20.00% u- ucorrect uanswer.B.) u0.20%
one uhundredth uof uone upercent, uused uchiefly uin uexpressing udifferences uof uinterest urates.
u0.01
so u0.01 ux20 u= u0.2
According uto uthe uTruth-in-Lending uAct u(TILA), uwhich uif uthe ufollowing ufees uis
uEXCLUDED ufrom uthe ucalculation uof uthe uannual upercentage urate?
A.) uHazard uinsurance
B.) uWire utransfer
C.) uPrepaid uinterest
D.) uMortgage uinsurance upremiums u- ucorrect uanswer.A.) uHazard uinsurance
FHA uloans uare:
A.) uPartially uguaranteed
B.) u100% uinsured
C.) uExempt
D.) uEntitled u- ucorrect uanswer.A.) uPartially uguaranteed
The ulate ufee ufor ua uconventional uloan uis:
A.) u3% uof uprinciple uand uinterest
B.) u4% uof uprinciple uand uinterest
C.) u5% uof uprinciple uand uinterest
D.) u10% uof uprinciple uand uinterest u- ucorrect uanswer.C.) u5% uof uprinciple uand uinterest
A ufunding ufee uif urequired ufor ua:
A.) uFHA uloan
B.) uVA uloan
C.) uJumbo uloan
D.) uConventional uloan u- ucorrect uanswer.B.) uVA uloan
A uMortgage uInsurance uPremium uis urequired uon:
A.) uFHA uloan
B.) uVA uloan
C.) uJumbo uloan
D.) uConventional uloan u- ucorrect uanswer.A.) uFHA uloan
The umortgagee uis uthe:
A.) uBorrower
