NMLS Practice Test Hard Questions with 100% Verified
Answers Graded A
A discount point is BEST described as a charge $13.52x 40 hours = $540.8 x 52 weeks =
the borrower pays to: $28,121.6 annually /12month = $2,343.47
Monthly income
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 The requirement for private mortgage insurance
C.) The seller as part of the closing costs of a is generally is continued when the loan-to-value
loan ratio falls below:
D.) A lender to ensure against foreclosure -
ANSWER -A.) A lender to decrease the A.) 20%
interest rate on the mortgage loan B.) 50%
C.) 80%
D.) 90% - ANSWER -C.) 80%
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 Which of the following documents itemizes all
property with sale price of $160,000. If the settlement costs including lender charges?
required down payment is 20%, how much
additional money will the buyer need to provide A.) Agreement of sale
toward the down payment at closing? B.) HUD-1/closing Disclosure
C.) Form 1003
A.) $32,000 D.) Forbearance agreement - ANSWER -B.)
B.) $27,000 HUD-1/closing Disclosure
C.) $30,000
D.) $25,000 - ANSWER -D.) $25,000
According to the Truth-in-Lending Act (TILA), the
term "refinance" applies to
$160,000 x .20 (20%) = 32000 - $7,000 =
$25,000 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
If an applicant works 40 hours every week and is D.) The satisfaction of an existing obligation and
paid $13.52 per hour, what is the applicant's its replacement by a new obligation -
monthly income? ANSWER -D.) The satisfaction of an
existing obligation and its replacement by a new
A.) $2,163.20 obligation
B.) $2,343.47
C.) $2,379.52
D.) $2,487.68 - ANSWER -B.) $2,343.47
What does a loan originator use to determine the
estimated value of a property based on an
, NMLS Practice Test Hard Questions with 100% Verified
Answers Graded A
analytical comparison of similar property sales? ANSWER -A.) Hazard insurance
A.) An appraisal
B.) A market survey
C.) An area survey FHA loans are:
D.) A Cost-benefit analysis - ANSWER -A.)
An appraisal A.) Partially guaranteed
B.) 100% insured
C.) Exempt
D.) Entitled - ANSWER -A.) Partially
Which of the following methods of disclosure guaranteed
does NOT meet the requirements of Equal Credit
Opportunity Act (ECOA)?
A.) E-mail The late fee for a conventional loan is:
B.) Mailed letter
C.) Telephone A.) 3% of principle and interest
D.) Faxed letter - ANSWER -C.) Telephone B.) 4% of principle and interest
C.) 5% of principle and interest
D.) 10% of principle and interest -
ANSWER -C.) 5% of principle and interest
Term "20 basis points" expressed as a
percentage is:
A.) 0.2% A funding fee if required for a:
B.) 0.20%
C.) 2.00% A.) FHA loan
D.) 20.00% - ANSWER -B.) 0.20% B.) VA loan
C.) Jumbo loan
one hundredth of one percent, used chiefly in D.) Conventional loan - ANSWER -B.) VA
expressing differences of interest rates. 0.01 loan
so 0.01 x20 = 0.2
A Mortgage Insurance Premium is required on:
According to the Truth-in-Lending Act (TILA), A.) FHA loan
which if the following fees is EXCLUDED from B.) VA loan
the calculation of the annual percentage rate? C.) Jumbo loan
D.) Conventional loan - ANSWER -A.) FHA
A.) Hazard insurance loan
B.) Wire transfer
C.) Prepaid interest
D.) Mortgage insurance premiums -
Answers Graded A
A discount point is BEST described as a charge $13.52x 40 hours = $540.8 x 52 weeks =
the borrower pays to: $28,121.6 annually /12month = $2,343.47
Monthly income
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 The requirement for private mortgage insurance
C.) The seller as part of the closing costs of a is generally is continued when the loan-to-value
loan ratio falls below:
D.) A lender to ensure against foreclosure -
ANSWER -A.) A lender to decrease the A.) 20%
interest rate on the mortgage loan B.) 50%
C.) 80%
D.) 90% - ANSWER -C.) 80%
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 Which of the following documents itemizes all
property with sale price of $160,000. If the settlement costs including lender charges?
required down payment is 20%, how much
additional money will the buyer need to provide A.) Agreement of sale
toward the down payment at closing? B.) HUD-1/closing Disclosure
C.) Form 1003
A.) $32,000 D.) Forbearance agreement - ANSWER -B.)
B.) $27,000 HUD-1/closing Disclosure
C.) $30,000
D.) $25,000 - ANSWER -D.) $25,000
According to the Truth-in-Lending Act (TILA), the
term "refinance" applies to
$160,000 x .20 (20%) = 32000 - $7,000 =
$25,000 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
If an applicant works 40 hours every week and is D.) The satisfaction of an existing obligation and
paid $13.52 per hour, what is the applicant's its replacement by a new obligation -
monthly income? ANSWER -D.) The satisfaction of an
existing obligation and its replacement by a new
A.) $2,163.20 obligation
B.) $2,343.47
C.) $2,379.52
D.) $2,487.68 - ANSWER -B.) $2,343.47
What does a loan originator use to determine the
estimated value of a property based on an
, NMLS Practice Test Hard Questions with 100% Verified
Answers Graded A
analytical comparison of similar property sales? ANSWER -A.) Hazard insurance
A.) An appraisal
B.) A market survey
C.) An area survey FHA loans are:
D.) A Cost-benefit analysis - ANSWER -A.)
An appraisal A.) Partially guaranteed
B.) 100% insured
C.) Exempt
D.) Entitled - ANSWER -A.) Partially
Which of the following methods of disclosure guaranteed
does NOT meet the requirements of Equal Credit
Opportunity Act (ECOA)?
A.) E-mail The late fee for a conventional loan is:
B.) Mailed letter
C.) Telephone A.) 3% of principle and interest
D.) Faxed letter - ANSWER -C.) Telephone B.) 4% of principle and interest
C.) 5% of principle and interest
D.) 10% of principle and interest -
ANSWER -C.) 5% of principle and interest
Term "20 basis points" expressed as a
percentage is:
A.) 0.2% A funding fee if required for a:
B.) 0.20%
C.) 2.00% A.) FHA loan
D.) 20.00% - ANSWER -B.) 0.20% B.) VA loan
C.) Jumbo loan
one hundredth of one percent, used chiefly in D.) Conventional loan - ANSWER -B.) VA
expressing differences of interest rates. 0.01 loan
so 0.01 x20 = 0.2
A Mortgage Insurance Premium is required on:
According to the Truth-in-Lending Act (TILA), A.) FHA loan
which if the following fees is EXCLUDED from B.) VA loan
the calculation of the annual percentage rate? C.) Jumbo loan
D.) Conventional loan - ANSWER -A.) FHA
A.) Hazard insurance loan
B.) Wire transfer
C.) Prepaid interest
D.) Mortgage insurance premiums -
