REAL ESTATE EXAM WITH ACTUAL EXAM
QUESTIONS AND CORRECT ANSWERS
GRADED A+
An oral or written agreement that is binding in a court of law is
called a: Correct Answer Contract
A breach of contract is a refusal or a failure to comply with the
terms of the contract. If the seller breaches the purchase contract,
the buyer may do all of the following EXCEPT:
A. Sue the seller for damages
B. Rescind the contract and recover the earnest money
C. Sue the broker for non-performance
D. Sue the seller for specific performance Correct Answer C. Sue
the broker for non-performance
When ownership of a mortgage is transferred from one company
or individual to another, it is called: Correct Answer Assignment
A mortgage loan which requires the remaining large balance be
paid at a specific point in time is called a/an: Correct Answer
Balloon Mortgage
,The following reason accounts for why bridge loans are not used
much anymore:
A. More second mortgage lenders now will lend at a high loan to
value
B. Sellers would rather accept offers from Buyers who have
already sold their property
C. Neither A or B
D. Both A and B Correct Answer D. Both A and B
(More second mortgage lenders now will lend at a high loan to
value
Sellers would rather accept offers from Buyers who have already
sold their property)
What is the collateral in a home loan? Correct Answer Property
itself
The adjustment date on an adjustable-rate mortgage is Correct
Answer The date the interest rate changes
Another term for the lender in a mortgage agreement is the
Correct Answer Mortgagee
,The part of the purchase price of a property that the buyer pays in
cash and does not finance with the mortgage is called the Correct
Answer Down Payment
The following is true of a government loan:
A. It is guaranteed by the Department of Veterans Affairs (VA)
B. It is guaranteed by the Rural Housing Service (RHS)
C. It is insured by the Federal Housing Administration (FHA)
D. All of the above Correct Answer D. All of the above
(It is guaranteed by the Department of Veterans Affairs (VA)
It is guaranteed by the Rural Housing Service (RHS)
It is insured by the Federal Housing Administration (FHA))
The principal of a loan is:
A. The amount borrowed or remaining unpaid
B. Part of the monthly payment that reduces the remaining
balance of a mortgage
C. The banker's ethics or value
D. Both A and B Correct Answer Both A and B
(The amount borrowed or remaining unpaid
, Part of the monthly payment that reduces the remaining balance
of a mortgage)
Which of the following is the best definition of a mortgage broker?
A. Much like a real estate broker, receives a commission on loans
B. A mortgage company which originates loans, then places with
other lending institutions
C. A mortgage company which originates loans, then keeps them
in house
D. An individual which originates loans, then sells on the
secondary market Correct Answer A. Much like a real estate
broker, receives a commission on loans
A government loan that is not a VA loan would be a/an Correct
Answer FHA Mortgage
You decide you want to buy a boat and you want to borrow
against the equity in your home. You would get a mortgage loan
up to a specified amount which is in second position to your first
mortgage. This arrangement is called a Correct Answer Home
equity line of credit (HELOC)
A mortgage with a lien position subordinate to the first mortgage
on a piece of property is called a Correct Answer Second
Mortgage
QUESTIONS AND CORRECT ANSWERS
GRADED A+
An oral or written agreement that is binding in a court of law is
called a: Correct Answer Contract
A breach of contract is a refusal or a failure to comply with the
terms of the contract. If the seller breaches the purchase contract,
the buyer may do all of the following EXCEPT:
A. Sue the seller for damages
B. Rescind the contract and recover the earnest money
C. Sue the broker for non-performance
D. Sue the seller for specific performance Correct Answer C. Sue
the broker for non-performance
When ownership of a mortgage is transferred from one company
or individual to another, it is called: Correct Answer Assignment
A mortgage loan which requires the remaining large balance be
paid at a specific point in time is called a/an: Correct Answer
Balloon Mortgage
,The following reason accounts for why bridge loans are not used
much anymore:
A. More second mortgage lenders now will lend at a high loan to
value
B. Sellers would rather accept offers from Buyers who have
already sold their property
C. Neither A or B
D. Both A and B Correct Answer D. Both A and B
(More second mortgage lenders now will lend at a high loan to
value
Sellers would rather accept offers from Buyers who have already
sold their property)
What is the collateral in a home loan? Correct Answer Property
itself
The adjustment date on an adjustable-rate mortgage is Correct
Answer The date the interest rate changes
Another term for the lender in a mortgage agreement is the
Correct Answer Mortgagee
,The part of the purchase price of a property that the buyer pays in
cash and does not finance with the mortgage is called the Correct
Answer Down Payment
The following is true of a government loan:
A. It is guaranteed by the Department of Veterans Affairs (VA)
B. It is guaranteed by the Rural Housing Service (RHS)
C. It is insured by the Federal Housing Administration (FHA)
D. All of the above Correct Answer D. All of the above
(It is guaranteed by the Department of Veterans Affairs (VA)
It is guaranteed by the Rural Housing Service (RHS)
It is insured by the Federal Housing Administration (FHA))
The principal of a loan is:
A. The amount borrowed or remaining unpaid
B. Part of the monthly payment that reduces the remaining
balance of a mortgage
C. The banker's ethics or value
D. Both A and B Correct Answer Both A and B
(The amount borrowed or remaining unpaid
, Part of the monthly payment that reduces the remaining balance
of a mortgage)
Which of the following is the best definition of a mortgage broker?
A. Much like a real estate broker, receives a commission on loans
B. A mortgage company which originates loans, then places with
other lending institutions
C. A mortgage company which originates loans, then keeps them
in house
D. An individual which originates loans, then sells on the
secondary market Correct Answer A. Much like a real estate
broker, receives a commission on loans
A government loan that is not a VA loan would be a/an Correct
Answer FHA Mortgage
You decide you want to buy a boat and you want to borrow
against the equity in your home. You would get a mortgage loan
up to a specified amount which is in second position to your first
mortgage. This arrangement is called a Correct Answer Home
equity line of credit (HELOC)
A mortgage with a lien position subordinate to the first mortgage
on a piece of property is called a Correct Answer Second
Mortgage
