Texas Real Estate Finance Practice
Exam 2025 With 100% Correct Answers
Mary is getting a $120,000 loan at 6.5 percent and will pay 3 discount points. What will the
effective interest rate be?
0.0665
0.0675
0.06875
0.0695 - correct answers ✔✔0.06875
3/8+6.5 =.06875
Which of the following is not a HUD responsibility?
FHA
Ginnie Mae
FDIC
CDBG - correct answers ✔✔FDIC
What is a leasehold mortgage called that is based mostly upon a well-known tenant's financial
strength?
Purchase money loan
Credit loan
Term loan
Secondary loan - correct answers ✔✔Credit loan
What does the term "mixed-use development" mean?
, A subdivision with common areas for all residents
More than one use for a single building
An apartment complex attached to a city park
An industrial park in a farming community - correct answers ✔✔More than one use for a single
building
Which statement about syndication is FALSE?
Most investors belonging to syndicates invest a lot of their own money.
Syndication offers small investors the opportunity to invest in real estate ventures that would
otherwise be outside their financial means.
A typical real estate syndicate combines the money of individual investors with the
management of a sponsor.
A syndicate is able to acquire real estate that could not be purchased by an individual alone. -
correct answers ✔✔Most investors belonging to syndicates invest a lot of their own money.
The Tax Reform Act of 1986 established an entity that can issue multiclass securities. What is
this entity called?
REIT
REMIC
RESPA
REMT - correct answers ✔✔REMIC
What is the term used to describe a loan that is not government-backed?
Standard
Conventional
Normal
Junior - correct answers ✔✔Conventional
Exam 2025 With 100% Correct Answers
Mary is getting a $120,000 loan at 6.5 percent and will pay 3 discount points. What will the
effective interest rate be?
0.0665
0.0675
0.06875
0.0695 - correct answers ✔✔0.06875
3/8+6.5 =.06875
Which of the following is not a HUD responsibility?
FHA
Ginnie Mae
FDIC
CDBG - correct answers ✔✔FDIC
What is a leasehold mortgage called that is based mostly upon a well-known tenant's financial
strength?
Purchase money loan
Credit loan
Term loan
Secondary loan - correct answers ✔✔Credit loan
What does the term "mixed-use development" mean?
, A subdivision with common areas for all residents
More than one use for a single building
An apartment complex attached to a city park
An industrial park in a farming community - correct answers ✔✔More than one use for a single
building
Which statement about syndication is FALSE?
Most investors belonging to syndicates invest a lot of their own money.
Syndication offers small investors the opportunity to invest in real estate ventures that would
otherwise be outside their financial means.
A typical real estate syndicate combines the money of individual investors with the
management of a sponsor.
A syndicate is able to acquire real estate that could not be purchased by an individual alone. -
correct answers ✔✔Most investors belonging to syndicates invest a lot of their own money.
The Tax Reform Act of 1986 established an entity that can issue multiclass securities. What is
this entity called?
REIT
REMIC
RESPA
REMT - correct answers ✔✔REMIC
What is the term used to describe a loan that is not government-backed?
Standard
Conventional
Normal
Junior - correct answers ✔✔Conventional
