BARNEY FLETCHER REAL ESTATE EXAM SCRIPT
2026 FULL QUESTIONS AND CORRECT
ANSWERS ALREADY PASSED
◉What is the current balance of a 7.5% loan if this month's interest
charge is $786.97?t Answer: $786.97 X 12 = $9,443.64 annualized
interest. $9,443.64 divided by .075 = $125,915 (rounded).
The correct answer is: $125,915.
◉Use the amortization table to solve this problem. We recommend
writing this one out manually to get a better visual. A new row begins
after each vertical bar (|), and a comma separates each cell. Per $1,000 of
loan amount: |Rate, 15 Years, 20 Years, 25 Years, 30 Years |9%, 10.15,
9.00, 8.40, 8.05 |9.5%, 10.45, 9.33, 8.74, 8.41 |10%, 10.75, 9.66, 9.09,
8.78|. A couple can qualify for a monthly loan payment of $1,200 (P&I).
In addition to closing costs, they will make a $10,000 down payment. If
lenders are offering 20-year loans at 9.5%, what is the maximum amount
that they can spend on a house? (To the nearest $100) Answer: Using
the table, 20-year loans at 9.5% require $9.33 per $1,000. $1,200
(monthly) / $9.33 x $1,000 = $128,617 loan amount. $128,617 loan +
$10,000 down = $138,617 purchase price, which would be rounded
down to $138,600.
The correct answer is: $138,600
, ◉If a homebuyer took out a 30-year $150,000 fixed rate loan and the
monthly principal and interest payment was $760.03. If the first monthly
payment reduces the principal balance by $197.80, what is the interest
rate of the loan?
Select Answer: If the first payment reduced the principal balance by
$197.80, the first month's interest payment must have been $562.50,
which is the $760.03 less the $197.80 principal payment. First multiply
the monthly interest payment times 12 to get the annualized payment:
$562.50 X 12 = $6,750. Now divide the annualized interest by the loan
amount to determine the interest rate. $6,750 divided by $150,000 =
.045 = 4.5%.
The correct answer is: 4.5%.
◉A homebuyer took out a $350,000 30-year fixed rate loan at 4.5%
interest with a monthly payment of $1,773.40. After making two
monthly payments the principal balance of the loan will have been
reduced by a total of: Answer: First month's payment: $350,000 X .045
= $15,750 annualized interest. $15,750 divided by 12 = $1,312.50 first
month's interest. $1,773.40 less $1,312.50 interest = $460.90 first
month's principal reduction. $350,000 less $460.90 = $349,539.10
remaining balance. Second month's payment: $349,539.10 X .045 =
$15,729.30 annualized interest. $15,729.30 divided by 12 = $1,310.77
second month's interest. $1,773.40 less $1,310.77 = $462.63 second
months principal reduction. $460.90 + $462.63 = $923.63 total principal
reduction after 2 payments.
The correct answer is: $923.53.
2026 FULL QUESTIONS AND CORRECT
ANSWERS ALREADY PASSED
◉What is the current balance of a 7.5% loan if this month's interest
charge is $786.97?t Answer: $786.97 X 12 = $9,443.64 annualized
interest. $9,443.64 divided by .075 = $125,915 (rounded).
The correct answer is: $125,915.
◉Use the amortization table to solve this problem. We recommend
writing this one out manually to get a better visual. A new row begins
after each vertical bar (|), and a comma separates each cell. Per $1,000 of
loan amount: |Rate, 15 Years, 20 Years, 25 Years, 30 Years |9%, 10.15,
9.00, 8.40, 8.05 |9.5%, 10.45, 9.33, 8.74, 8.41 |10%, 10.75, 9.66, 9.09,
8.78|. A couple can qualify for a monthly loan payment of $1,200 (P&I).
In addition to closing costs, they will make a $10,000 down payment. If
lenders are offering 20-year loans at 9.5%, what is the maximum amount
that they can spend on a house? (To the nearest $100) Answer: Using
the table, 20-year loans at 9.5% require $9.33 per $1,000. $1,200
(monthly) / $9.33 x $1,000 = $128,617 loan amount. $128,617 loan +
$10,000 down = $138,617 purchase price, which would be rounded
down to $138,600.
The correct answer is: $138,600
, ◉If a homebuyer took out a 30-year $150,000 fixed rate loan and the
monthly principal and interest payment was $760.03. If the first monthly
payment reduces the principal balance by $197.80, what is the interest
rate of the loan?
Select Answer: If the first payment reduced the principal balance by
$197.80, the first month's interest payment must have been $562.50,
which is the $760.03 less the $197.80 principal payment. First multiply
the monthly interest payment times 12 to get the annualized payment:
$562.50 X 12 = $6,750. Now divide the annualized interest by the loan
amount to determine the interest rate. $6,750 divided by $150,000 =
.045 = 4.5%.
The correct answer is: 4.5%.
◉A homebuyer took out a $350,000 30-year fixed rate loan at 4.5%
interest with a monthly payment of $1,773.40. After making two
monthly payments the principal balance of the loan will have been
reduced by a total of: Answer: First month's payment: $350,000 X .045
= $15,750 annualized interest. $15,750 divided by 12 = $1,312.50 first
month's interest. $1,773.40 less $1,312.50 interest = $460.90 first
month's principal reduction. $350,000 less $460.90 = $349,539.10
remaining balance. Second month's payment: $349,539.10 X .045 =
$15,729.30 annualized interest. $15,729.30 divided by 12 = $1,310.77
second month's interest. $1,773.40 less $1,310.77 = $462.63 second
months principal reduction. $460.90 + $462.63 = $923.63 total principal
reduction after 2 payments.
The correct answer is: $923.53.
