NMLS Prac ce Test Hard Ques ons and answers with
complete solu on updated 2025/2026 100% VERIFIED
CORRECT NEW!!
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 me of applica on 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 Answers 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 addi onal $2,000
in op on money to be credited at closing on property with sale price of $160,000. If the
required down payment is 20%, how much addi onal 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 Answers 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 Answers 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 con nued when the loan-to-
value ra o falls below:
A.) 20%
B.) 50%
C.) 80%
D.) 90% - Correct Answers C.) 80%
Which of the following documents itemizes all se<lement costs including lender charges?
A.) Agreement of sale
B.) HUD-1/closing Disclosure
C.) Form 1003
D.) Forbearance agreement - Correct Answers 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 reduc on in annual percentage rate
C.) The renewal of a single payment obliga on with no change in the original terms
D.) The sa sfac on of an exis ng obliga on and its replacement by a new obliga on - Correct
Answers D.) The sa sfac on of an exis ng obliga on and its replacement by a new obliga on
What does a loan originator use to determine the es mated value of a property based on an
analy cal comparison of similar property sales?
A.) An appraisal
B.) A market survey
C.) An area survey
D.) A Cost-benefit analysis - Correct Answers 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 le<er
C.) Telephone
D.) Faxed le<er - Correct Answers C.) Telephone
Term "20 basis points" expressed as a percentage is:
A.) 0.2%
complete solu on updated 2025/2026 100% VERIFIED
CORRECT NEW!!
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 me of applica on 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 Answers 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 addi onal $2,000
in op on money to be credited at closing on property with sale price of $160,000. If the
required down payment is 20%, how much addi onal 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 Answers 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 Answers 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 con nued when the loan-to-
value ra o falls below:
A.) 20%
B.) 50%
C.) 80%
D.) 90% - Correct Answers C.) 80%
Which of the following documents itemizes all se<lement costs including lender charges?
A.) Agreement of sale
B.) HUD-1/closing Disclosure
C.) Form 1003
D.) Forbearance agreement - Correct Answers 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 reduc on in annual percentage rate
C.) The renewal of a single payment obliga on with no change in the original terms
D.) The sa sfac on of an exis ng obliga on and its replacement by a new obliga on - Correct
Answers D.) The sa sfac on of an exis ng obliga on and its replacement by a new obliga on
What does a loan originator use to determine the es mated value of a property based on an
analy cal comparison of similar property sales?
A.) An appraisal
B.) A market survey
C.) An area survey
D.) A Cost-benefit analysis - Correct Answers 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 le<er
C.) Telephone
D.) Faxed le<er - Correct Answers C.) Telephone
Term "20 basis points" expressed as a percentage is:
A.) 0.2%
