Georgia real estate salesperson PSI
exam
straight note Correct answers promissory note principal do in one lump sum
at the end of the loan term
installment note Correct answers promissory note with specific principal
and interest
principle of Leverage Correct answers business tool to earn profit like a
landlord with rent
FICO Correct answers most commonly used credit rating system
negative amortization Correct answers payment is less than interest
amount owing increases
equity Correct answers market value minus amount of existing liens
Equitable Title Correct answers right to obtain full ownership of the property
right to use legal title Correct answers actual full ownership right to sell
Regulation Z Correct answers 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 Correct answers prohibits discrimination
in lending because of race religion sex national origin marital status or age
truth in lending Tila Correct answers promotes informed use of credit
interest only loan Correct answers interest-only is paid in early years a fully
amortized loan is acquired at a specific time mostly the same as a straight
term
buy Downs Correct answers 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 Correct answers 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 Correct answers Sutherlands money to
buyer seller keeps deed until debt is paid
,wrap-around mortgage loan Correct answers a second or Junior
mortgage includes balance of First Mortgage plus additional financing
needed rarely made
reverse annuity mortgage Ram Correct answers reverse mortgage
primarily for the elderly or retired
open-end mortgage loan Correct answers equity loan a line of credit
secured by a mortgage percent of equity
blanket mortgage loan Correct answers usually for financing a
subdivision
private mortgage insurance PMI Correct answers if the borrower puts less
than 20% down the lender might require
PMI Correct answers 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 Correct answers
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
graduated payment mortgage GPM Correct answers 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 Correct answers used in Georgia Linder can take
the house without going to court
strict foreclosure Correct answers 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 Correct answers 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 Correct answers legal advice represents the lender at closing
VA mortgage Correct answers lower down payment or even 0% down
only one at a time
, Freddie Mac Correct answers secondary mortgage market for FHA and VA
backed by mortgage pools investors have less risk than buying one loan
alienation clause Correct answers due on sale Clause the entire loan
balance is due when sold or exchanged
right of first refusal Correct answers if landlord decides to sell it must be
offered to the tenant before anyone else
option to buy Correct answers tenant gets possession of property in option
to buy at a set price with a designated period of time not a lease purchase
gross lease Correct answers flat leaf straight lease tenant pays fixed
amount at specified intervals landlord pays taxes Insurance repairs and
maintenance common for residential rentals
net lease Correct answers triple net lease tenant pays fixed rent plus taxes
Insurance maintenance and repairs common for commercial and Industrial
graduated leases Correct answers includes an escalator Clause to protect
landlord from rising cost and inflation
Step Up lease Correct answers rent increases in predetermined amounts
example tenant pays 800 in the first year 900 in the second and 1000 in
the third
index lease Correct answers periodic rent adjustment based on
changes in the economic index such as prime lending rate or
consumer Price Index
escalator lease Correct answers rent increases are tied to operating
costs
reappraisal lease Correct answers property will be reappraised at certain
intervals to protect landlord from falling behind market value
percentage lease Correct answers 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 Correct answers 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 Correct answers property owner sells property with an
agreement to lease it back typically for commercial or industrial
properties
occupancy agreement Correct answers move in agreement purchaser
occupies the property before owning the property with the intent to
purchase
exam
straight note Correct answers promissory note principal do in one lump sum
at the end of the loan term
installment note Correct answers promissory note with specific principal
and interest
principle of Leverage Correct answers business tool to earn profit like a
landlord with rent
FICO Correct answers most commonly used credit rating system
negative amortization Correct answers payment is less than interest
amount owing increases
equity Correct answers market value minus amount of existing liens
Equitable Title Correct answers right to obtain full ownership of the property
right to use legal title Correct answers actual full ownership right to sell
Regulation Z Correct answers 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 Correct answers prohibits discrimination
in lending because of race religion sex national origin marital status or age
truth in lending Tila Correct answers promotes informed use of credit
interest only loan Correct answers interest-only is paid in early years a fully
amortized loan is acquired at a specific time mostly the same as a straight
term
buy Downs Correct answers 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 Correct answers 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 Correct answers Sutherlands money to
buyer seller keeps deed until debt is paid
,wrap-around mortgage loan Correct answers a second or Junior
mortgage includes balance of First Mortgage plus additional financing
needed rarely made
reverse annuity mortgage Ram Correct answers reverse mortgage
primarily for the elderly or retired
open-end mortgage loan Correct answers equity loan a line of credit
secured by a mortgage percent of equity
blanket mortgage loan Correct answers usually for financing a
subdivision
private mortgage insurance PMI Correct answers if the borrower puts less
than 20% down the lender might require
PMI Correct answers 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 Correct answers
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
graduated payment mortgage GPM Correct answers 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 Correct answers used in Georgia Linder can take
the house without going to court
strict foreclosure Correct answers 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 Correct answers 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 Correct answers legal advice represents the lender at closing
VA mortgage Correct answers lower down payment or even 0% down
only one at a time
, Freddie Mac Correct answers secondary mortgage market for FHA and VA
backed by mortgage pools investors have less risk than buying one loan
alienation clause Correct answers due on sale Clause the entire loan
balance is due when sold or exchanged
right of first refusal Correct answers if landlord decides to sell it must be
offered to the tenant before anyone else
option to buy Correct answers tenant gets possession of property in option
to buy at a set price with a designated period of time not a lease purchase
gross lease Correct answers flat leaf straight lease tenant pays fixed
amount at specified intervals landlord pays taxes Insurance repairs and
maintenance common for residential rentals
net lease Correct answers triple net lease tenant pays fixed rent plus taxes
Insurance maintenance and repairs common for commercial and Industrial
graduated leases Correct answers includes an escalator Clause to protect
landlord from rising cost and inflation
Step Up lease Correct answers rent increases in predetermined amounts
example tenant pays 800 in the first year 900 in the second and 1000 in
the third
index lease Correct answers periodic rent adjustment based on
changes in the economic index such as prime lending rate or
consumer Price Index
escalator lease Correct answers rent increases are tied to operating
costs
reappraisal lease Correct answers property will be reappraised at certain
intervals to protect landlord from falling behind market value
percentage lease Correct answers 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 Correct answers 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 Correct answers property owner sells property with an
agreement to lease it back typically for commercial or industrial
properties
occupancy agreement Correct answers move in agreement purchaser
occupies the property before owning the property with the intent to
purchase
