NMLS Practice Test Hard Questions And
Answers Latest Top Score.
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 .- .correct .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?
A.) .$32,000
B.) .$27,000
C.) .$30,000
D.) .$25,000 .- .correct .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 .- .correct .answer. . . . .B.) .$2,343.47
,$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% .- .correct .answer. . . . .C.) .80%
Which .of .the .following .documents .itemizes .all .settlement .costs .including .lender .charges?
A.) .Agreement .of .sale
B.) .HUD-1/closing .Disclosure
C.) .Form .1003
D.) .Forbearance .agreement .- .correct .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 .-
.correct .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?
A.) .An .appraisal
B.) .A .market .survey
C.) .An .area .survey
D.) .A .Cost-benefit .analysis .- .correct .answer. . . . .A.) .An .appraisal
Which .of .the .following .methods .of .disclosure .does .NOT .meet .the .requirements .of .Equal
.Credit .Opportunity .Act .(ECOA)?
A.) .E-mail
B.) .Mailed .letter
C.) .Telephone
D.) .Faxed .letter .- .correct .answer. . . . .C.) .Telephone
Term ."20 .basis .points" .expressed .as .a .percentage .is:
A.) .0.2%
, B.) .0.20%
C.) .2.00%
D.) .20.00% .- .correct .answer. . . . .B.) .0.20%
one .hundredth .of .one .percent, .used .chiefly .in .expressing .differences .of .interest .rates.
.0.01
so .0.01 .x20 .= .0.2
According .to .the .Truth-in-Lending .Act .(TILA), .which .if .the .following .fees .is .EXCLUDED
.from .the .calculation .of .the .annual .percentage .rate?
A.) .Hazard .insurance
B.) .Wire .transfer
C.) .Prepaid .interest
D.) .Mortgage .insurance .premiums .- .correct .answer. . . . .A.) .Hazard .insurance
FHA .loans .are:
A.) .Partially .guaranteed
B.) .100% .insured
C.) .Exempt
D.) .Entitled .- .correct .answer. . . . .A.) .Partially .guaranteed
The .late .fee .for .a .conventional .loan .is:
A.) .3% .of .principle .and .interest
B.) .4% .of .principle .and .interest
C.) .5% .of .principle .and .interest
D.) .10% .of .principle .and .interest .- .correct .answer. . . . .C.) .5% .of .principle .and .interest
A .funding .fee .if .required .for .a:
A.) .FHA .loan
B.) .VA .loan
C.) .Jumbo .loan
D.) .Conventional .loan .- .correct .answer. . . . .B.) .VA .loan
A .Mortgage .Insurance .Premium .is .required .on:
A.) .FHA .loan
B.) .VA .loan
C.) .Jumbo .loan
D.) .Conventional .loan .- .correct .answer. . . . .A.) .FHA .loan
The .mortgagee .is .the:
Answers Latest Top Score.
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 .- .correct .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?
A.) .$32,000
B.) .$27,000
C.) .$30,000
D.) .$25,000 .- .correct .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 .- .correct .answer. . . . .B.) .$2,343.47
,$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% .- .correct .answer. . . . .C.) .80%
Which .of .the .following .documents .itemizes .all .settlement .costs .including .lender .charges?
A.) .Agreement .of .sale
B.) .HUD-1/closing .Disclosure
C.) .Form .1003
D.) .Forbearance .agreement .- .correct .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 .-
.correct .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?
A.) .An .appraisal
B.) .A .market .survey
C.) .An .area .survey
D.) .A .Cost-benefit .analysis .- .correct .answer. . . . .A.) .An .appraisal
Which .of .the .following .methods .of .disclosure .does .NOT .meet .the .requirements .of .Equal
.Credit .Opportunity .Act .(ECOA)?
A.) .E-mail
B.) .Mailed .letter
C.) .Telephone
D.) .Faxed .letter .- .correct .answer. . . . .C.) .Telephone
Term ."20 .basis .points" .expressed .as .a .percentage .is:
A.) .0.2%
, B.) .0.20%
C.) .2.00%
D.) .20.00% .- .correct .answer. . . . .B.) .0.20%
one .hundredth .of .one .percent, .used .chiefly .in .expressing .differences .of .interest .rates.
.0.01
so .0.01 .x20 .= .0.2
According .to .the .Truth-in-Lending .Act .(TILA), .which .if .the .following .fees .is .EXCLUDED
.from .the .calculation .of .the .annual .percentage .rate?
A.) .Hazard .insurance
B.) .Wire .transfer
C.) .Prepaid .interest
D.) .Mortgage .insurance .premiums .- .correct .answer. . . . .A.) .Hazard .insurance
FHA .loans .are:
A.) .Partially .guaranteed
B.) .100% .insured
C.) .Exempt
D.) .Entitled .- .correct .answer. . . . .A.) .Partially .guaranteed
The .late .fee .for .a .conventional .loan .is:
A.) .3% .of .principle .and .interest
B.) .4% .of .principle .and .interest
C.) .5% .of .principle .and .interest
D.) .10% .of .principle .and .interest .- .correct .answer. . . . .C.) .5% .of .principle .and .interest
A .funding .fee .if .required .for .a:
A.) .FHA .loan
B.) .VA .loan
C.) .Jumbo .loan
D.) .Conventional .loan .- .correct .answer. . . . .B.) .VA .loan
A .Mortgage .Insurance .Premium .is .required .on:
A.) .FHA .loan
B.) .VA .loan
C.) .Jumbo .loan
D.) .Conventional .loan .- .correct .answer. . . . .A.) .FHA .loan
The .mortgagee .is .the:
