Real Estate Finance Champions Practice Exam With Answers (61 Solved Questions)

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Real Estate Finance I-CHAMPIONS ExamQuestions with correct AnswersPeriodic payment amounts such as principal & interest, estimated escrow, estimatedmonthly payment, and __________ must be disclosed in the Projected Payments section ofthe Loan Estimate form.(a) Mortgage Insurance(b) Homeowner's insurance(c) Property value(d) Estimated inspection cost - A___________ relates to Federal Government spending.(a) Monetary policy(b) Legislative policy(c) Reserve requirement(d) Fiscal policy - DThe minimum downpayment on a VA loan is:(a) 2% of the sales price(b) 0% of the sales price(c) 3.75% of the sales price

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(d) 1% of the sales price - B_________ is the process of creating a new mortgage loan.(a) Origination(b) Funding(c) Underwriting(d) Servicing - AA veteran can have more than one VA loan:(a) If the prior VA loan was paid in full and the property disposed of(b) The prior VA loan was assumed by an eligible veteran who substituted their entitlement(c) A or B(d) Under no circumstances - a VA loan is a "once in a lifetime" benefit - C_________ are not-for-profit organizations that exist to serve their members.(a) Mortgage companies(b) Credit unions(c) Insurance companies(d) One that cannot be financed - B

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A qualifying ratio that compares the borrower's proposed house payment to their grossmonthly income is the __________.(a) Back ratio(b) Appraisal ratio(c) Front ratio(d) Loan to value ratio - CIn the Closing Disclosure, prepaids include homeowner's and mortgage insurance premiums,prepaid interest, property taxes, and a maximum of __________ additional items.(a) 13(b) 3(c) 7(d) 9 - BWhen calculating the monthly payment, the lender will add an amount equal to:(a) Twelve months insurance and six months taxes(b) 1/12 of the annual taxes and insurance(c) 1/12 of the annual loan amortization(d) An amount sufficient to create the escrow account - BWhich of the following is true regarding FHA loans?

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(a) An FHA loan requires a CRV(b) Ratios may be exceeded with compensating factors(c) FHA loans require a minimum 5% down payment(d) FHA loans are for low income borrowers only - BThe age of a property based upon the appraiser's assessment of the property's maintenanceand upgrades is its __________.(a) Useful life(b) Market age(c) Chronological age(d) Effective age - DIn an ARM, the index:(a) Is controlled by the lender(b) Is controlled by the borrower(c) Varies with fluctuations in financial markets(d) Is chosen by the lender on the adjustment date - CThe loan to value ratio is:(a) The minimum down payment

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(b) The percentage of value that a lender is willing to finance(c) Set by HUD on all loans(d) Based upon the assessed value of the property - BAn amortizing loan is:(a) A loan whose payment includes both principal and interest(b) A straight loan requiring interest only payments(c) A wraparound loan(d) A loan that includes both real and personal property - AEscrow of taxes and insurance is required for FHA loans:(a) With a LTV of 90% or greater(b) Made to borrowers with a credit score under 600(c) Always - all FHA loans require escrow of taxes and insurance(d) Unless the borrower agrees to pay an escrow waiver fee - CA claim, lien, charge, or liability attached to and binding real property is a(n) __________.(a) Clause(b) Easement(c) Encumbrance

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