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NMLS Practice Test Hard Questions with Answers (100%
Correct Answers)
A discount point is BEST described as a charge the borrower pays to:
A.) A lender to decrease the interest rate on the mortgage loan
B.) A mortgage broker at the time of application to obtain a favorable
rate
C.) The seller as part of the closing costs of a loan
D.) A lender to ensure against foreclosure— Answer: A.) A lender to
decrease the interest rate on the mortgage loan
A buyer has made an earnest money payment of $5,000. The buyer
pays an additional $2,000 in option money to be credited at closing on
property with sale price of $160,000. If the required down payment is
20%, how much additional money will the buyer need to provide
toward the down payment at closing?
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A.) $32,000
B.) $27,000
C.) $30,000
D.) $25,000— Answer: D.) $25,000
$160,000 x .20 (20%) = 32000 - $7,000 = $25,000
If an applicant works 40 hours every week and is paid $13.52 per hour,
what is the applicant's monthly income?
A.) $2,163.20
B.) $2,343.47
C.) $2,379.52
D.) $2,487.68— Answer: B.) $2,343.47
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,3
$13.52x 40 hours = $540.8 x 52 weeks = $28,121.6 annually /12month =
$2,343.47 Monthly income
The requirement for private mortgage insurance is generally is
continued when the loan-to-value ratio falls below:
A.) 20%
B.) 50%
C.) 80%
D.) 90%— Answer: C.) 80%
Which of the following documents itemizes all settlement costs
including lender charges?
A.) Agreement of sale
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B.) HUD-1/closing Disclosure
C.) Form 1003
D.) Forbearance agreement— Answer: B.) HUD-1/closing Disclosure
According to the Truth-in-Lending Act (TILA), the term "refinance"
applies to
A.) A change in a payment schedule
B.) A reduction in annual percentage rate
C.) The renewal of a single payment obligation with no change in the
original terms
D.) The satisfaction of an existing obligation and its replacement by a
new obligation— Answer: D.) The satisfaction of an existing
obligation and its replacement by a new obligation
What does a loan originator use to determine the estimated value of a
property based on an analytical comparison of similar property sales?
© 2025 All rights reserved
NMLS Practice Test Hard Questions with Answers (100%
Correct Answers)
A discount point is BEST described as a charge the borrower pays to:
A.) A lender to decrease the interest rate on the mortgage loan
B.) A mortgage broker at the time of application to obtain a favorable
rate
C.) The seller as part of the closing costs of a loan
D.) A lender to ensure against foreclosure— Answer: A.) A lender to
decrease the interest rate on the mortgage loan
A buyer has made an earnest money payment of $5,000. The buyer
pays an additional $2,000 in option money to be credited at closing on
property with sale price of $160,000. If the required down payment is
20%, how much additional money will the buyer need to provide
toward the down payment at closing?
© 2025 All rights reserved
,2
A.) $32,000
B.) $27,000
C.) $30,000
D.) $25,000— Answer: D.) $25,000
$160,000 x .20 (20%) = 32000 - $7,000 = $25,000
If an applicant works 40 hours every week and is paid $13.52 per hour,
what is the applicant's monthly income?
A.) $2,163.20
B.) $2,343.47
C.) $2,379.52
D.) $2,487.68— Answer: B.) $2,343.47
© 2025 All rights reserved
,3
$13.52x 40 hours = $540.8 x 52 weeks = $28,121.6 annually /12month =
$2,343.47 Monthly income
The requirement for private mortgage insurance is generally is
continued when the loan-to-value ratio falls below:
A.) 20%
B.) 50%
C.) 80%
D.) 90%— Answer: C.) 80%
Which of the following documents itemizes all settlement costs
including lender charges?
A.) Agreement of sale
© 2025 All rights reserved
, 4
B.) HUD-1/closing Disclosure
C.) Form 1003
D.) Forbearance agreement— Answer: B.) HUD-1/closing Disclosure
According to the Truth-in-Lending Act (TILA), the term "refinance"
applies to
A.) A change in a payment schedule
B.) A reduction in annual percentage rate
C.) The renewal of a single payment obligation with no change in the
original terms
D.) The satisfaction of an existing obligation and its replacement by a
new obligation— Answer: D.) The satisfaction of an existing
obligation and its replacement by a new obligation
What does a loan originator use to determine the estimated value of a
property based on an analytical comparison of similar property sales?
© 2025 All rights reserved
