RESIDENTIAL SALES COMPARISON COMPREHENSIVE
2026/2027 EXAM QUESTIONS AND SOLUTIONS
GUARANTEE A+
✔✔An estate in severalty involves ____________ owner(s).
Only one
More than one
At least two
Corporate - ✔✔Only one
✔✔"An organization that acts as a single legal entity in performing certain activities,
usually business for profit; also includes charitable, educational, and religious
organizations" is the definition of
Corporation
Cooperative
Syndicate
Partnership - ✔✔Corporation
✔✔An estate that is restricted to husband and wife only is called
Joint tenancy
Tenancy in severalty
Tenancy by the entirety
Tenancy in common - ✔✔Tenancy by the entirety
✔✔The sequence of adjustments is determined by the _______ and through analysis of
the _______.
Lender, data
Appraiser, problem
Market, data
Market, situation - ✔✔Market,Data
✔✔Conventional mortgages are defined as: - ✔✔"Mortgages that are neither insured
nor guaranteed by an agency of the government, although they may be privately
insured."
✔✔Guaranteed mortgages - ✔✔A mortgage in which a party other than the borrower
assures payment in the event of default, e.g., a VA-guaranteed mortgage.
,✔✔Insured mortgages: - ✔✔A mortgage in which a party other than the borrower
assures payment on default by the mortgagor in return for the payment of a premium,
e.g., FHA-insured mortgages, private mortgage insurance (PMI)."
✔✔First mortgage: - ✔✔A mortgage that has priority over all other mortgage liens on a
property."
✔✔Junior liens: - ✔✔A lien placed on a property after a previous lien has been made
and recorded; a lien made subordinate to another by agreement; e.g., second and third
mortgages; also called second lien or third lien."
✔✔Amortization is defined as - ✔✔"The process of retiring a debt or recovering a
capital investment, typically through scheduled, systematic repayment of the principal."
✔✔Fixed rate mortgage - ✔✔A conventional mortgage with an interest rate that does
not vary over the life of the loan."
✔✔A Balloon Mortgage is defined as: - ✔✔"A mortgage that is not fully amortized at
maturity and requires a lump sum, or balloon, payment of the outstanding balance"
✔✔Graduated payment mortgage: - ✔✔"A debt secured by real estate in which
mortgage payments are matched to projected increases in the borrower's income. The
periodic payments start out low and gradually increase."
✔✔Adjustable Rate Mortgages (ARMs) are defined as: - ✔✔"A debt secured by real
estate with an interest rate that may move up or down following a specified schedule or
in accordance with the movements of a standard or index to which the interest rate is
tied."
✔✔Reverse Mortgage. They are defined as: - ✔✔"A type of mortgage where by senior
homeowners systematically borrow against the equity in their home, receiving regular
(usually monthly) payments from the lender. Borrowed funds and accrued interest come
due when the last surviving borrower dies or permanently vacates the premises. Under
current HUD guidelines all of the mortgagors must be at least 62 years of age. When
the loan is due the estate usually has approximately 12 months to repay the balance of
the reverse mortgage or sell the home to pay off the loan amount. All remaining equity
is paid to the vacating homeowner or the estate. An FHA insurance program ensures
that the vacating homeowner or estate is not liable if the loan balance exceeds the
value of the home at the time the loan is due. Also called a reverse-annuity mortgage or
home equity conversion mortgage."
✔✔Discount points are defined as: - ✔✔"A percentage of the loan amount that a lender
charges a borrower for making a loan; may represent a payment for services rendered
in issuing a loan or additional interest to the lender payable in advance; also called
points"
, ✔✔The secondary mortgage market is defined as: - ✔✔"A market created by
government and private agencies for the purchase and sale of existing mortgages;
provides greater liquidity for mortgages. Fannie Mae, Freddie Mac, and Ginnie Mae are
the principal operators in the secondary mortgage market."
✔✔A purchaser bought a property for $215,000, put 15% down and borrowed the rest
at 6.75% interest for 25 years. The lender charged 2.5 points at the closing. How much
was paid for the points?
$2,150
3,267.50
$4,568.75
$5,723.40 - ✔✔$215,000 X .85= $182,750. $182,750 X .025= $4568.75
✔✔The primary participants in the secondary mortgage market are
FHA and VA
Fannie Mae and FHA
Freddie Mac, Ginnie Mae and HUD
Fannie Mae, Freddie Mac, and Ginnie Mae - ✔✔Fannie Mae, Freddie Mac, and Ginnie
Mae
✔✔An ARM is
Another term for a balloon mortgage
An adjustable rate mortgage
An amortized rebate mortgage
A mortgage with graduated payments - ✔✔An adjustable rate mortgage
✔✔Which of the following is a guaranteed loan?
VA
FHA
Conventional
ARM - ✔✔VA
✔✔- A type of mortgage designed for retirees and other fixed-income home owners who
owe little or nothing on their homes is called a _________________ mortgage.
Senior
Graduated annuity
Equity deferred
Reverse annuity - ✔✔Reverse Annuity
2026/2027 EXAM QUESTIONS AND SOLUTIONS
GUARANTEE A+
✔✔An estate in severalty involves ____________ owner(s).
Only one
More than one
At least two
Corporate - ✔✔Only one
✔✔"An organization that acts as a single legal entity in performing certain activities,
usually business for profit; also includes charitable, educational, and religious
organizations" is the definition of
Corporation
Cooperative
Syndicate
Partnership - ✔✔Corporation
✔✔An estate that is restricted to husband and wife only is called
Joint tenancy
Tenancy in severalty
Tenancy by the entirety
Tenancy in common - ✔✔Tenancy by the entirety
✔✔The sequence of adjustments is determined by the _______ and through analysis of
the _______.
Lender, data
Appraiser, problem
Market, data
Market, situation - ✔✔Market,Data
✔✔Conventional mortgages are defined as: - ✔✔"Mortgages that are neither insured
nor guaranteed by an agency of the government, although they may be privately
insured."
✔✔Guaranteed mortgages - ✔✔A mortgage in which a party other than the borrower
assures payment in the event of default, e.g., a VA-guaranteed mortgage.
,✔✔Insured mortgages: - ✔✔A mortgage in which a party other than the borrower
assures payment on default by the mortgagor in return for the payment of a premium,
e.g., FHA-insured mortgages, private mortgage insurance (PMI)."
✔✔First mortgage: - ✔✔A mortgage that has priority over all other mortgage liens on a
property."
✔✔Junior liens: - ✔✔A lien placed on a property after a previous lien has been made
and recorded; a lien made subordinate to another by agreement; e.g., second and third
mortgages; also called second lien or third lien."
✔✔Amortization is defined as - ✔✔"The process of retiring a debt or recovering a
capital investment, typically through scheduled, systematic repayment of the principal."
✔✔Fixed rate mortgage - ✔✔A conventional mortgage with an interest rate that does
not vary over the life of the loan."
✔✔A Balloon Mortgage is defined as: - ✔✔"A mortgage that is not fully amortized at
maturity and requires a lump sum, or balloon, payment of the outstanding balance"
✔✔Graduated payment mortgage: - ✔✔"A debt secured by real estate in which
mortgage payments are matched to projected increases in the borrower's income. The
periodic payments start out low and gradually increase."
✔✔Adjustable Rate Mortgages (ARMs) are defined as: - ✔✔"A debt secured by real
estate with an interest rate that may move up or down following a specified schedule or
in accordance with the movements of a standard or index to which the interest rate is
tied."
✔✔Reverse Mortgage. They are defined as: - ✔✔"A type of mortgage where by senior
homeowners systematically borrow against the equity in their home, receiving regular
(usually monthly) payments from the lender. Borrowed funds and accrued interest come
due when the last surviving borrower dies or permanently vacates the premises. Under
current HUD guidelines all of the mortgagors must be at least 62 years of age. When
the loan is due the estate usually has approximately 12 months to repay the balance of
the reverse mortgage or sell the home to pay off the loan amount. All remaining equity
is paid to the vacating homeowner or the estate. An FHA insurance program ensures
that the vacating homeowner or estate is not liable if the loan balance exceeds the
value of the home at the time the loan is due. Also called a reverse-annuity mortgage or
home equity conversion mortgage."
✔✔Discount points are defined as: - ✔✔"A percentage of the loan amount that a lender
charges a borrower for making a loan; may represent a payment for services rendered
in issuing a loan or additional interest to the lender payable in advance; also called
points"
, ✔✔The secondary mortgage market is defined as: - ✔✔"A market created by
government and private agencies for the purchase and sale of existing mortgages;
provides greater liquidity for mortgages. Fannie Mae, Freddie Mac, and Ginnie Mae are
the principal operators in the secondary mortgage market."
✔✔A purchaser bought a property for $215,000, put 15% down and borrowed the rest
at 6.75% interest for 25 years. The lender charged 2.5 points at the closing. How much
was paid for the points?
$2,150
3,267.50
$4,568.75
$5,723.40 - ✔✔$215,000 X .85= $182,750. $182,750 X .025= $4568.75
✔✔The primary participants in the secondary mortgage market are
FHA and VA
Fannie Mae and FHA
Freddie Mac, Ginnie Mae and HUD
Fannie Mae, Freddie Mac, and Ginnie Mae - ✔✔Fannie Mae, Freddie Mac, and Ginnie
Mae
✔✔An ARM is
Another term for a balloon mortgage
An adjustable rate mortgage
An amortized rebate mortgage
A mortgage with graduated payments - ✔✔An adjustable rate mortgage
✔✔Which of the following is a guaranteed loan?
VA
FHA
Conventional
ARM - ✔✔VA
✔✔- A type of mortgage designed for retirees and other fixed-income home owners who
owe little or nothing on their homes is called a _________________ mortgage.
Senior
Graduated annuity
Equity deferred
Reverse annuity - ✔✔Reverse Annuity
