Champions School Of Real Estate –
FINANCE Exam 2025 || Complete
Questions & Answers (Graded A+)
_______ was established in 1970 for the purpose of purchasing mortgages in the
Secondary Market. - ANSWER - Freddie Mac
A claim, lien, charge, or liability attached to and binding real property is an - ANSWER -
encumbrance
A ______ is a right given by law to creditors to have debts paid out of the property of a
defaulting debater. - ANSWER - Lien
A mortgage is a pledge of real estate as security for repayment of debt in which the
borrow is known as ______ - ANSWER - Mortgagor
Which of the following is a lender? - ANSWER - Morgagee
Which of the following contains the borrowers personal promise to pay a debt? -
ANSWER - The note
When a property is foreclosed and sold at an auction for less that what is owed, the
lender may sue the borrower for a _____. - ANSWER - Deficiency Judgement
A borrower under the deed of trust .... proceed exceeded $5,000, who is entitled to the
$5,000? - ANSWER - The debtor, borrower, mortgagor
In a contract for deed transaction, when does the borrower receive the deed? -
ANSWER - When the final loan payment is made.
A second mortgage is ______ to the first mortgage. - ANSWER - Subordinate
A ______ clause gives the borrower the ability to replace the primary instrument with
another without affecting the position of the subordinate instrument. - ANSWER - Lifting
Which clause in a mortgage allows a lender to move to or take a secondary lien -
ANSWER - Subordinate clause
"HOUSE" When calculating the monthly payment the lender will add - ANSWER -
1/12th of the annual taxes and insurance
, What do commercial banks, credit unions and mortgage companies have in common? -
ANSWER - All components of the primary mortgage market
The ____ is where borrowers and mortgage lenders come together to create and
negotiate terms of a mortgage transaction - ANSWER - The primary market
A portfolio loan is ____. - ANSWER - A loan not sold into the secondary market but
retained by the lender
_____ bonds are sold by government entities to fund major capital investments -
ANSWER - Municipal Bonds
Seller financing = - ANSWER - takeback, carry back
A point is ___% of the loan amount - ANSWER - One
An amortizing loan is .... - ANSWER - A loan with payments that includes both the
principle and interest
A buyer is interested in buying a home. Interest are forecasted to go down in the next
few months, what type of loan should he secure? - ANSWER - An ARM Loan
In an ARM loan the index_____ - ANSWER - Varies with fluctuation in the Financial
Market
The fixed rate charge on an adjustable rate mortgage until the first adjustment date -
ANSWER - Initial rate
For the borrower planning to remain in his or her home in the long term of the borrower
who is adverse to risk the best possible is - ANSWER - Fixed-rate mortgage
Ann appropriate loan for a property of significant rehabilitation - ANSWER -
Construction to permanent loan
Which of the following loan types would most likely contain a release clause - ANSWER
- A blanket loan
The loan to value ratio is - ANSWER - Percentage of the lessor of the appraise value of
sales price that the lender will need to finance
Which department of the government administers the FHA - ANSWER - HUD
Department of housing and urban development
FHA homes are available for - ANSWER - Single-family, multi-family ALL OF THE
ABOVE
FINANCE Exam 2025 || Complete
Questions & Answers (Graded A+)
_______ was established in 1970 for the purpose of purchasing mortgages in the
Secondary Market. - ANSWER - Freddie Mac
A claim, lien, charge, or liability attached to and binding real property is an - ANSWER -
encumbrance
A ______ is a right given by law to creditors to have debts paid out of the property of a
defaulting debater. - ANSWER - Lien
A mortgage is a pledge of real estate as security for repayment of debt in which the
borrow is known as ______ - ANSWER - Mortgagor
Which of the following is a lender? - ANSWER - Morgagee
Which of the following contains the borrowers personal promise to pay a debt? -
ANSWER - The note
When a property is foreclosed and sold at an auction for less that what is owed, the
lender may sue the borrower for a _____. - ANSWER - Deficiency Judgement
A borrower under the deed of trust .... proceed exceeded $5,000, who is entitled to the
$5,000? - ANSWER - The debtor, borrower, mortgagor
In a contract for deed transaction, when does the borrower receive the deed? -
ANSWER - When the final loan payment is made.
A second mortgage is ______ to the first mortgage. - ANSWER - Subordinate
A ______ clause gives the borrower the ability to replace the primary instrument with
another without affecting the position of the subordinate instrument. - ANSWER - Lifting
Which clause in a mortgage allows a lender to move to or take a secondary lien -
ANSWER - Subordinate clause
"HOUSE" When calculating the monthly payment the lender will add - ANSWER -
1/12th of the annual taxes and insurance
, What do commercial banks, credit unions and mortgage companies have in common? -
ANSWER - All components of the primary mortgage market
The ____ is where borrowers and mortgage lenders come together to create and
negotiate terms of a mortgage transaction - ANSWER - The primary market
A portfolio loan is ____. - ANSWER - A loan not sold into the secondary market but
retained by the lender
_____ bonds are sold by government entities to fund major capital investments -
ANSWER - Municipal Bonds
Seller financing = - ANSWER - takeback, carry back
A point is ___% of the loan amount - ANSWER - One
An amortizing loan is .... - ANSWER - A loan with payments that includes both the
principle and interest
A buyer is interested in buying a home. Interest are forecasted to go down in the next
few months, what type of loan should he secure? - ANSWER - An ARM Loan
In an ARM loan the index_____ - ANSWER - Varies with fluctuation in the Financial
Market
The fixed rate charge on an adjustable rate mortgage until the first adjustment date -
ANSWER - Initial rate
For the borrower planning to remain in his or her home in the long term of the borrower
who is adverse to risk the best possible is - ANSWER - Fixed-rate mortgage
Ann appropriate loan for a property of significant rehabilitation - ANSWER -
Construction to permanent loan
Which of the following loan types would most likely contain a release clause - ANSWER
- A blanket loan
The loan to value ratio is - ANSWER - Percentage of the lessor of the appraise value of
sales price that the lender will need to finance
Which department of the government administers the FHA - ANSWER - HUD
Department of housing and urban development
FHA homes are available for - ANSWER - Single-family, multi-family ALL OF THE
ABOVE
