California Real Estate 2023Exam - Test 4 With Certified Solutions!!

1. A real property security endorsement is valid for: a. as long as the broker's license is valid, and it needs no further endorsement. b. multiples of 4 years. c. one year. d. the term of the broker's license to which the endorsement is affixed. - ANSWERd. the term of the broker's license to which the endorsement is affixed. 2. A conventional loan would differ from an FHA loan in that the conventional loan would have: a. lower monthly payments. b. lower interest rates. c. lower down payment requirements. d. lower loan-to-value ratio. - ANSWERd. lower loan-to-value ratio. FHA typically will loan a greater percentage of value to the borrower than a conventional lender, requiring a smaller down payment. The conventional lender does not have the "insurance" against loss that the FHA lender has and, therefore, is taking greater risks and must receive more down payment (equity) from the buyer/borrower. 3. A buyer has purchased a residence for $100,000 utilizing VA entitlement to finance the entire purchase price. The interest rate = 12%; combined monthly payments for 30 years will accumulate to be $370,300. What will be the initial month's principal payment? a. $128.61 b. $78.61 c. $28.61 d. $0.00 - ANSWERc. $28.61 Monthly (P+I) = $370,300 ÷ (30 x 12) = $1,028.61 Initial month interest = $100,000 x 12% ÷ 12 = $1,000 Therefore, initial month principal amount = $1,028.61- $1,000 = $28.61. 4. A property was leased to a lessee for a two-year period, with monthly lease payments to be $800. The lessor collected the first and last month payments. This agreement