©FYNDLAY 2024/2025 ALL RIGHTS RESERVED 11:29AM. A+
National PSI Exam Prep Questions And
Answers| Already Graded A+| Latest Update.
A broker is completing a CMA to determine the potential listing price of a seller's home. Which
of the following is NOT part of the final CMA given to the seller?
A) Highest and best use evaluation
B) Comparable sales analysis
C) Adjustments to past sales
D) Pictures of comparables - Answer✔A
Houses in the local area have had an increase in sales price and a decrease in days on the
market. A broker who is attempting to determine the current market value for a residential
listing would get the BEST estimate of value by using
A) a GRM as the primary consideration to determine value.
B) the cost approach with reproduction estimates.
C) comparables that are no more than six months old.
D) comparables that are no more than 12 months old. - Answer✔C
Rental rates have increased by 2% in the last six months. Which appraisal principle BEST
explains this rate increase?
A) Principle of substitution
B) Principle of supply and demand
C) Principle of contribution
1
, ©FYNDLAY 2024/2025 ALL RIGHTS RESERVED 11:29AM. A+
D) Principle of highest and best use - Answer✔B
The current monthly GRM in a neighborhood is 200, and the annual income is $24,000. What is
the estimated value of a property in this neighborhood?
A) $200,000
B) $240,000
C) $400,000
D) $4,800,000 - Answer✔C
The subject property has two baths and one fireplace. The property across the street sold for
$181,000 and has two baths and two fireplaces. The property behind the subject sold for
$175,000 and has two baths and no fireplace. In the area, baths are worth $5,000 and
fireplaces are worth $3,000. What is the subject property worth?
A) $175,000
B) $177,000
C) $178,000
D) $180,000 - Answer✔C
According to federal government lending regulations, a buyer purchasing a home must have an
appraisal for all the following types of financing EXCEPT
A) FHA.
B) VA.
C) loan sold to FNMA.
D) seller carry. - Answer✔D
A buyer chooses a loan with an LTV ratio of 90%, which requires the purchase of PMI, instead of
a loan with an 80% LTV, which would not require the insurance. The buyer MOST likely made
this choice because
A) if the buyer defaults, PMI will protect the buyer by paying off the full loan.
B) the buyer will make a larger down payment but have smaller monthly payments, including
PMI.
2
, ©FYNDLAY 2024/2025 ALL RIGHTS RESERVED 11:29AM. A+
C) paying PMI will mean that all mortgage payments and homeowners association fees are
deferred in case of default.
D) the buyer wants a smaller down payment, even though the buyer will have to pay PMI. -
Answer✔D
A buyer is getting a new mortgage with a 95% loan-to-value ratio. The final loan amount the
lender will lend the buyer is determined by the
A) lower of the sales price or appraised value.
B) higher of the sales price or appraised value.
C) sales price only.
D) appraised value only. - Answer✔A
The difference between using a partially amortized loan or an interest-only term loan is that the
partially amortized loan would result in
A) smaller payments and a smaller balloon payment.
B) larger payments and a smaller balloon payment.
C) smaller payments and a larger balloon payment.
D) larger payments and a larger balloon payment. - Answer✔B
A borrower is using leverage on a new home loan at 90% loan to value. The disadvantage of this
type of leveraging is that
A) the borrower is at higher risk of defaulting on the loan.
B) it allows the borrower to pay less interest over the life of the loan.
C) a larger down payment is required.
D) there is rarely any requirement for PMI. - Answer✔A
A property owner has a large amount of equity in his home but does not want to sell it to gain
access to his money. What type of loan could the owner use to access the equity in his home
without having to make monthly loan payments?
A) Contract for deed
B) Purchase money mortgage
3
, ©FYNDLAY 2024/2025 ALL RIGHTS RESERVED 11:29AM. A+
C) Reverse mortgage
D) Growth equity mortgage - Answer✔C
A lender in first position filed documents to initiate foreclosure on a property. The borrower
offered to give the lender a deed in lieu of foreclosure. If the lender accepts the deed in lieu,
which of the following is TRUE?
A) The lender must continue with the foreclosure.
B) Upon receiving the deed, the lender acquires the property free and clear of all liens.
C) The lender will take title subject to any junior liens.
D) The lender needs to obtain a mortgagee's title policy to clear all liens. - Answer✔C
A seller has agreed to act as the buyer's bank. The seller and the buyer signed a contract for
deed to help the buyer purchase the seller's home. When will the buyer receive possession and
title?
A) Full rights of possession and full legal title are received upon making the final loan payment.
B) Partial legal title and full rights of possession are received at closing.
C) Title is received as agreed to in the contract, and possession is received upon making the
final loan payment.
D) Possession is received as agreed to in the contract, and title is received upon making the final
loan payment. - Answer✔D
A contract for the purchase of real property might be terminated by all of the following EXCEPT
A) the buyer, while under contract, has found a different property he prefers and has asked the
seller to terminate so he can purchase the other property.
B) a buyer sends written notice during the financing contingency; he is terminating the contract
due to being unable to qualify for a loan and requests the return of earnest money.
C) the buyer has given the seller a large amount of repair items and the seller and the buyer
have agreed to mutually rescind the agreement due to inspection issues.
D) the buyer found out the property is not zoned to be used as the buyer wishes. The buyer
sends a notice to terminate based upon the contract contingency giving the buyer 10 days to
verify the property use. - Answer✔A
4
National PSI Exam Prep Questions And
Answers| Already Graded A+| Latest Update.
A broker is completing a CMA to determine the potential listing price of a seller's home. Which
of the following is NOT part of the final CMA given to the seller?
A) Highest and best use evaluation
B) Comparable sales analysis
C) Adjustments to past sales
D) Pictures of comparables - Answer✔A
Houses in the local area have had an increase in sales price and a decrease in days on the
market. A broker who is attempting to determine the current market value for a residential
listing would get the BEST estimate of value by using
A) a GRM as the primary consideration to determine value.
B) the cost approach with reproduction estimates.
C) comparables that are no more than six months old.
D) comparables that are no more than 12 months old. - Answer✔C
Rental rates have increased by 2% in the last six months. Which appraisal principle BEST
explains this rate increase?
A) Principle of substitution
B) Principle of supply and demand
C) Principle of contribution
1
, ©FYNDLAY 2024/2025 ALL RIGHTS RESERVED 11:29AM. A+
D) Principle of highest and best use - Answer✔B
The current monthly GRM in a neighborhood is 200, and the annual income is $24,000. What is
the estimated value of a property in this neighborhood?
A) $200,000
B) $240,000
C) $400,000
D) $4,800,000 - Answer✔C
The subject property has two baths and one fireplace. The property across the street sold for
$181,000 and has two baths and two fireplaces. The property behind the subject sold for
$175,000 and has two baths and no fireplace. In the area, baths are worth $5,000 and
fireplaces are worth $3,000. What is the subject property worth?
A) $175,000
B) $177,000
C) $178,000
D) $180,000 - Answer✔C
According to federal government lending regulations, a buyer purchasing a home must have an
appraisal for all the following types of financing EXCEPT
A) FHA.
B) VA.
C) loan sold to FNMA.
D) seller carry. - Answer✔D
A buyer chooses a loan with an LTV ratio of 90%, which requires the purchase of PMI, instead of
a loan with an 80% LTV, which would not require the insurance. The buyer MOST likely made
this choice because
A) if the buyer defaults, PMI will protect the buyer by paying off the full loan.
B) the buyer will make a larger down payment but have smaller monthly payments, including
PMI.
2
, ©FYNDLAY 2024/2025 ALL RIGHTS RESERVED 11:29AM. A+
C) paying PMI will mean that all mortgage payments and homeowners association fees are
deferred in case of default.
D) the buyer wants a smaller down payment, even though the buyer will have to pay PMI. -
Answer✔D
A buyer is getting a new mortgage with a 95% loan-to-value ratio. The final loan amount the
lender will lend the buyer is determined by the
A) lower of the sales price or appraised value.
B) higher of the sales price or appraised value.
C) sales price only.
D) appraised value only. - Answer✔A
The difference between using a partially amortized loan or an interest-only term loan is that the
partially amortized loan would result in
A) smaller payments and a smaller balloon payment.
B) larger payments and a smaller balloon payment.
C) smaller payments and a larger balloon payment.
D) larger payments and a larger balloon payment. - Answer✔B
A borrower is using leverage on a new home loan at 90% loan to value. The disadvantage of this
type of leveraging is that
A) the borrower is at higher risk of defaulting on the loan.
B) it allows the borrower to pay less interest over the life of the loan.
C) a larger down payment is required.
D) there is rarely any requirement for PMI. - Answer✔A
A property owner has a large amount of equity in his home but does not want to sell it to gain
access to his money. What type of loan could the owner use to access the equity in his home
without having to make monthly loan payments?
A) Contract for deed
B) Purchase money mortgage
3
, ©FYNDLAY 2024/2025 ALL RIGHTS RESERVED 11:29AM. A+
C) Reverse mortgage
D) Growth equity mortgage - Answer✔C
A lender in first position filed documents to initiate foreclosure on a property. The borrower
offered to give the lender a deed in lieu of foreclosure. If the lender accepts the deed in lieu,
which of the following is TRUE?
A) The lender must continue with the foreclosure.
B) Upon receiving the deed, the lender acquires the property free and clear of all liens.
C) The lender will take title subject to any junior liens.
D) The lender needs to obtain a mortgagee's title policy to clear all liens. - Answer✔C
A seller has agreed to act as the buyer's bank. The seller and the buyer signed a contract for
deed to help the buyer purchase the seller's home. When will the buyer receive possession and
title?
A) Full rights of possession and full legal title are received upon making the final loan payment.
B) Partial legal title and full rights of possession are received at closing.
C) Title is received as agreed to in the contract, and possession is received upon making the
final loan payment.
D) Possession is received as agreed to in the contract, and title is received upon making the final
loan payment. - Answer✔D
A contract for the purchase of real property might be terminated by all of the following EXCEPT
A) the buyer, while under contract, has found a different property he prefers and has asked the
seller to terminate so he can purchase the other property.
B) a buyer sends written notice during the financing contingency; he is terminating the contract
due to being unable to qualify for a loan and requests the return of earnest money.
C) the buyer has given the seller a large amount of repair items and the seller and the buyer
have agreed to mutually rescind the agreement due to inspection issues.
D) the buyer found out the property is not zoned to be used as the buyer wishes. The buyer
sends a notice to terminate based upon the contract contingency giving the buyer 10 days to
verify the property use. - Answer✔A
4
