mortgage MCQs

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Which of the following is NOT typically contained in the note with a mortgage?






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The right of assignment by the lender






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Which of the following does business in the secondary mortgage market?






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Which of the following programs allows homebuyers to buy a home without paying mortgage insurance even if the down payment is less than a certain pe...






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Who of the following people would obtain a conforming mortgage?






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Not paying off the principal by the end of the term of an ARM is a risk that results from






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Seller financing of the loan secured by the buyer’s mortgage is a






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Ginnie Mae






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An advantage of a VA-guaranteed mortgage is






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In order to make sure that the terms of the mortgage at the time of the closing are what the borrower understood them to be, a buyer should ask for...






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Which of the following statements accurately describes subprime mortgages?






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Which of the following loans is exempt from Regulation Z?






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A Mortgage Loan Disclosure Statement must be delivered to the borrower






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Keeshawn James has an FHA-insured mortgage, so he must have a






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Jumbo mortgages are loans that






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The MPI is






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Which of the following must be given to mortgage applicants the day before the closing?






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A lender reserves the right to






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An escrow account for a mortgage






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A residential mortgage transaction for purposes of the Homeowner’s Protection Act is one that






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A conforming mortgage is all of the following EXCEPT it






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Seller financing is also known as a






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“Subject to a mortgage”






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The Reynolds Homes Agency is buying up land to create a subdivision that will be built in phases. The best kind of mortgage for the developers to t...






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All of the following are sources of funds available for mortgage lending except:






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A supported, defended estimate of the value of property is known as:






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All of the following are services of real estate except:






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After a mortgage is paid in full, a mortgagor should request that the mortgagee sign and record a






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A superior mortgagee voluntarily allows a subsequent mortgagee to assume a priority position under the principal of:






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The due-on-sale clause:






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Karen owns a house worth $250,000 with a mortgage debt of $200,000. What is her loan-to-value ratio?






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Tara finances the purchase of a condominium with a $300,000 mortgage at 8% interest and a charge of 4 points. How much money will the points cost Ta...






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Miranda works for a closing attorney and needs to verify the balance of an existing mortgage on the subject property so that the lender can be fully ...






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A non-judicial proceeding that voluntarily transfers title to the mortgagee without the need for a foreclosure is known as:






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Which of the following is not an essential element of a mortgage?





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Which of the following transactions will require a buyer to be liable for an existing mortgage?






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The market value of a property, less the value of existing mortgages, is known as:






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In a fully amortized mortgage, although the monthly payment stays the same, the portion of each monthly payment that is applied to reduce the princip...






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The component of an adjustable rate mortgage that remains constant throughout the term of the loan is the:






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A below-market interest rate offered on adjustable rate mortgages utilized to attract new borrowers is known as the:






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Which of the following applies to a biweekly mortgage? I. The loan is typically paid off faster II. Twenty-six payments are made annually III. The ...






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Christina has entered into a mortgage for a condominium that she intends to rent on a weekly basis. The lender has accepted a mortgage which covers t...






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Which type of mortgage requires an upfront mortgage insurance payment plus a monthly mortgage insurance payment?






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The qualifying ratios for an FHA loan are:






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Mortgage bankers are an example of:






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The amount of a VA guarantee on a mortgage loan depends on:






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A person who borrows money directly from the owner of the funds is an example of:






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All of the following are sources of lendable funds for mortgages except:






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The association known as "Fannie Mae" is the:






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Which of the following secondary mortgage market agencies is a government agency?






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The Federal Truth in Lending Act is governed by Regulation:






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Buyer Bill is buying a new home for $150,000 and is getting a 95% loan. The lender is charging 1½ points to originate this loan. How much money wi...






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Shifty Savings and Loan is making a 90% loan with an annual interest rate of 7%. If the lender charges 3 discount points at closing to make the loan,...






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What is the principal balance if the interest amount is $800 at 8% interest for six months?






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Bob borrows $20,000 at 15% interest from Guido. When the loan has been paid in full, Bob has paid $2,250 in interest. How long did Bob owe Guido?






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Steve borrows $30,000 at 8% interest for a period of 25 years. If monthly payments (P&I) were $231.54, what is the principal balance of the loan afte...






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In a lien theory state, the mortgage:






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A purchase money mortgage:






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Which of the following mortgages accepts both real property and personal property as collateral?






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Which of the following documents can a Florida real estate licensee legally prepare?






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Florida operates under the idea that a borrower in a mortgage loan situation retains title to the property. This is known as the






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The terms and conditions of the promise to pay back money borrowed to buy a house is found in the






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The process by which a mortgage loan is paid off in equal payments consisting of principal and interest is called






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What does a discount point do to the effective yield that a lender gets from a mortgage loan?






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Equity is most accurately defined as the






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A mortgage lender requires a borrower to make monthly payments—in addition to the mortgage payments—to a special account to cover taxe...






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Buyer A borrows money to buy a house. As part of the repayment plan, when he sells the house he will have to turn over a portion of the profit he m...






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What is the loan-to-value ratio above which a borrower will typically have to purchase private mortgage insurance?






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A conforming loan is defined as one






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An acceleration clause in a mortgage loan






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In a loan situation, what does a mortgage do?






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A deed in lieu of foreclosure






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The secondary mortgage market includes all of the following except






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The state intangible tax applies to the recording of






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A borrower obtains a fully amortized mortgage loan for $165,000 at an interest rate of 6.5% for 30 years. The monthly payments are $1,044.45. What ...






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A real estate broker may arrange financing for a home sale and be paid for that service if






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What clause in the original mortgage loan or trust deed would prevent the use of a wraparound mortgage by a seller?






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What is the difference between buying property and assuming an existing mortgage or buying the property subject to an existing mortgage?






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A loan arrangement that allows payments to be made to a seller who, in turn, continues to make payments on an existing loan is called a(n)






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In a case where a borrower pays 2 discount points on a mortgage loan, which of the following is true?






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Which of the following types of mortgage loans features a monthly payment that does not change throughout the life of the loan?






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The funds for a VA loan are received by the mortgagor from






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Which of the following does not buy mortgages?






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In seller financing of a home purchase, which of the following is correct?






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In an adjustable-rate mortgage, the number that changes is the






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What type of notice is provided by recording the deed after a closing?






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A new mortgage from a bank will appear






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A mortgage satisfaction is provided by






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Which of the following is not true about a biweekly mortgage loan compared to a monthly payment loan?






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Banks who lend money for mortgage loans are practicing






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The right of equitable redemption in Florida ends






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The higher the loan-to-value ratio,






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A foreclosure proceeding is stopped by payment of all the money due, and the loan resumes according to the original terms. The mortgage agreement m...






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A seller takes back a mortgage on a property she sells. The buyer now wants to borrow money from a bank to build a house on the property. The bank, ...






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An estoppel certificate






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Financing provided by the seller as part of the buyer’s purchase price is called a






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Which of the following charges would normally appear on both buyer and seller closing statements as a prorated item rather than on only one of the ...






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Which of the following is not a state tax charged in connection with a home purchase?






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The entity that loses ownership through a deed of trust mortgage foreclosure is the






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The provisions of the Real Estate Settlement Procedures Act (RESPA) apply to