California Real Estate Salesperson Exam
Questions with 100% Correct Answers |
Already Graded A+
Acceleration Clause - ✔✔The clause in a mortgage or deed of trust that can be
enforced to make the entire debt due immediately if the borrower defaults on
an installment payment or other covenant. (Pay now)
Adjustable Rate Mortgage (ARM) - ✔✔a mortgage with an interest rate that
increases or decreases during the life of the loan
adjustment date - ✔✔The date the interest rate changes on an adjustable-rate
mortgage.
Amortization - ✔✔A method for computing equal periodic payments for an
installment loan. (Paid within certain range of time)
amortization schedule - ✔✔A table showing precisely how a loan will be repaid.
It gives the required payment on each payment date and a breakdown of the
payment, showing how much is interest and how much is repayment of
principal.
Annual Percentage Rate (APR) - ✔✔Cost of borrowing money on an annual
basis; takes into account the interest rate and other related fees on a loan.
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©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025.
,Application - ✔✔The form used to apply for a mortgage loan, containing
information about a borrower'a income, savings, assets, debts, and more.
Appraisal - ✔✔A written justification of the price paid for a property, primarily
based on an analysis of comparable sales of similar homes nearby.
appraised value - ✔✔An opinion of a property's fair market value, based on an
appraiser's knowledge, experience, and analysis of the property. Since an
appraisal is based primarily on comparable sales, and the most recent sale is the
one on the property in question, the appraisal usually comes out at the
purchase price.
Appraiser - ✔✔An individual qualified by education, training, and experience to
estimate the value of real property and personal property. Although some
appraisers work directly for mortgage lenders, most are independent.
Appreciation - ✔✔increase in value over time
Assessed Value (AV) - ✔✔The valuation placed on property by a public tax
assessor for purposes of taxation.
Assessment - ✔✔The placing of a value on property for the purpose of taxation.
Assessor - ✔✔A public official who establishes the value of a property for
taxation purposes.
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©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025.
,Asset - ✔✔item of value owned by a firm or an individual
Assignment - ✔✔When ownership of your mortgage is transferred from one
company or individual to another, it is called an assignment.
Assumable Mortgage - ✔✔A mortgage that can be assumed by the buyer when
a home is sold. Usually, the borrower must "qualify" in order to assume the
loan.
assumption - ✔✔The term applied when a buyer assumes the seller's mortgage.
Balloon Mortgage - ✔✔A mortgage loan that requires the remaining principal
balance be paid at a specific point in time. For example, a loan may be
amortized as if it would be paid over a thirty year period, but requires that at
the end of the tenth year the entire remaining balance must be paid.
Balloon Payment - ✔✔The final lump sum payment that is due at the
termination of a balloon mortgage.
bankruptcy - ✔✔By filing in federal bankruptcy court, an individual or
individuals can restructure or relieve themselves of debts and liabilities.
Bankruptcies are of various types, but the most common for an individual seem
to be a "Chapter 7 No Asset" bankruptcy which relieves the borrower of most
types of debts. A borrower cannot usually qualify for an "A" paper loan for a
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©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025.
, period of two years after the bankruptcy has been discharged and requires the
re-establishment of an ability to repay debt.
Bill of sale - ✔✔A written document that transfers title to personal property.
biweekly mortgage - ✔✔A mortgage in which you make payments every two
weeks instead of once a month. The basic result is that instead of making twelve
monthly payments during the year, you make thirteen. The extra payment
reduces the principal, substantially reducing the time it takes to pay off a thirty
year mortgage. Note: there are independent companies that encourage you to
set up bi-weekly payment schedules with them on your thirty year mortgage.
They charge a set-up fee and a transfer fee for every payment. Your funds are
deposited into a trust account from which your monthly payment is then made,
and the excess funds then remain in the trust account until enough has accrued
to make the additional payment which will then be paid to reduce your
principle. You could save money by doing the same thing yourself, plus you have
to have faith that once you transfer money to them that they will actually
transfer your funds to your lender.
bond market - ✔✔Usually refers to the daily buying and selling of thirty year
treasury bonds. Lenders follow this market intensely because as the yields of
bonds go up and down, fixed rate mortgages do approximately the same thing.
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©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025.
Questions with 100% Correct Answers |
Already Graded A+
Acceleration Clause - ✔✔The clause in a mortgage or deed of trust that can be
enforced to make the entire debt due immediately if the borrower defaults on
an installment payment or other covenant. (Pay now)
Adjustable Rate Mortgage (ARM) - ✔✔a mortgage with an interest rate that
increases or decreases during the life of the loan
adjustment date - ✔✔The date the interest rate changes on an adjustable-rate
mortgage.
Amortization - ✔✔A method for computing equal periodic payments for an
installment loan. (Paid within certain range of time)
amortization schedule - ✔✔A table showing precisely how a loan will be repaid.
It gives the required payment on each payment date and a breakdown of the
payment, showing how much is interest and how much is repayment of
principal.
Annual Percentage Rate (APR) - ✔✔Cost of borrowing money on an annual
basis; takes into account the interest rate and other related fees on a loan.
1|Page
©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025.
,Application - ✔✔The form used to apply for a mortgage loan, containing
information about a borrower'a income, savings, assets, debts, and more.
Appraisal - ✔✔A written justification of the price paid for a property, primarily
based on an analysis of comparable sales of similar homes nearby.
appraised value - ✔✔An opinion of a property's fair market value, based on an
appraiser's knowledge, experience, and analysis of the property. Since an
appraisal is based primarily on comparable sales, and the most recent sale is the
one on the property in question, the appraisal usually comes out at the
purchase price.
Appraiser - ✔✔An individual qualified by education, training, and experience to
estimate the value of real property and personal property. Although some
appraisers work directly for mortgage lenders, most are independent.
Appreciation - ✔✔increase in value over time
Assessed Value (AV) - ✔✔The valuation placed on property by a public tax
assessor for purposes of taxation.
Assessment - ✔✔The placing of a value on property for the purpose of taxation.
Assessor - ✔✔A public official who establishes the value of a property for
taxation purposes.
2|Page
©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025.
,Asset - ✔✔item of value owned by a firm or an individual
Assignment - ✔✔When ownership of your mortgage is transferred from one
company or individual to another, it is called an assignment.
Assumable Mortgage - ✔✔A mortgage that can be assumed by the buyer when
a home is sold. Usually, the borrower must "qualify" in order to assume the
loan.
assumption - ✔✔The term applied when a buyer assumes the seller's mortgage.
Balloon Mortgage - ✔✔A mortgage loan that requires the remaining principal
balance be paid at a specific point in time. For example, a loan may be
amortized as if it would be paid over a thirty year period, but requires that at
the end of the tenth year the entire remaining balance must be paid.
Balloon Payment - ✔✔The final lump sum payment that is due at the
termination of a balloon mortgage.
bankruptcy - ✔✔By filing in federal bankruptcy court, an individual or
individuals can restructure or relieve themselves of debts and liabilities.
Bankruptcies are of various types, but the most common for an individual seem
to be a "Chapter 7 No Asset" bankruptcy which relieves the borrower of most
types of debts. A borrower cannot usually qualify for an "A" paper loan for a
3|Page
©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025.
, period of two years after the bankruptcy has been discharged and requires the
re-establishment of an ability to repay debt.
Bill of sale - ✔✔A written document that transfers title to personal property.
biweekly mortgage - ✔✔A mortgage in which you make payments every two
weeks instead of once a month. The basic result is that instead of making twelve
monthly payments during the year, you make thirteen. The extra payment
reduces the principal, substantially reducing the time it takes to pay off a thirty
year mortgage. Note: there are independent companies that encourage you to
set up bi-weekly payment schedules with them on your thirty year mortgage.
They charge a set-up fee and a transfer fee for every payment. Your funds are
deposited into a trust account from which your monthly payment is then made,
and the excess funds then remain in the trust account until enough has accrued
to make the additional payment which will then be paid to reduce your
principle. You could save money by doing the same thing yourself, plus you have
to have faith that once you transfer money to them that they will actually
transfer your funds to your lender.
bond market - ✔✔Usually refers to the daily buying and selling of thirty year
treasury bonds. Lenders follow this market intensely because as the yields of
bonds go up and down, fixed rate mortgages do approximately the same thing.
4|Page
©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025.
