which BEST describes the principle that a home maintains its highest value in a neighborhood with similar homes and similar type housing?
A.
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B. conformity
C. highest and best use
D. competition - correct answer B. conformity
If you took projected future costs from projected future income, you would arrive at:
A. capitalization rate
B. projected net income
C. projected debt service
D. projected debt coverage - correct answer B. projected net income
A deed would be presumed to have been delivered upon the happening of which of the following events?
A. it was subrogated
B. it was notarized
C. it was recorded
D. it was signed - correct answer C. it was recorded
A farmer leased a property on an annual basis whereby the farmer or the owner could terminate the lease by giving the other party 90 days notice. One half of the crop value would be the annual rent. This type of lease would best be described as a:
A. tenancy in common
B. periodic estate
C. tenancy for years
D. tenancy at will - correct answer B. periodic estate
In times of a tight money market where the money supply is short, the secondary mortgage market helps first time home buyers by:
A. lowering interest rates
B. providing liquidity to primary lenders
C. raising required ratios on qualifying
D. insisting on larger mortgage insurance premiums - correct answer B. providing liquidity to primary lenders
Which of the following organizations is the largest purchaser of mortgages in the secondary mortgage market?
A. Federal National Mortgage Association (FNMA)
B. Government National Mortgage Association (GNMA)
C. Federal Home Loan Mortgage Corporation (FHLMC)
D. Farmer's Home Administration (FMHA) - correct answer A. Federal National Mortgage Association (FNMA)
An out of town buyer wanted to buy a home as soon as possible and did not want to pay a loan origination fee. Which type loan would be best?
A. conventional loan
B. FHA loan
C. assumed loan
D. PMI loan - correct answer C. assumed loan
A loan for which of the following would NOT fall under Regulation Z?
A. residential home
B. a loan involving discount points
C. shoe store in a commercial shopping strip
D. a duplex - correct answer B. a loan involving discount points
An 18 year straight note had a total of $27,000 in interest over the term. The interest rate was 10% and loan was 75% of the sales price. What was the sales price?
A. $15,000
B. $20,000
C. $23,850
D. $28,000 - correct answer B. $20,000
$27,000 divided by 18 = $1,500 interest per year. $1,500 divided by 10% = $15,000 loan divided by 75% = $20,000 price
A straight note for $15,400 was executed at 9% annual interest. If the borrower actually paid $5,544 in interest, how many months did he take to pay it off?
A. 39
B. 42
C. 45
D. 48 - correct answer D. 48
$15,400 x 9% = yearly interest of $1,386 divided by 12 months = monthly interest of $115.50. $5,544 divided by $115.50 = 48 months [Show Less]