Skip to content
Past Exams

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

Real Estate Finance Champions Practice Exam With Answers is designed to sharpen your test-taking abilities with authentic past exams.

Preview 6 of 19 pages

See the first 6 pages exactly as they appear in the document.

  1. Page 1
    Read page 1 as text

    Real Estate Finance I-CHAMPIONS Exam Questions with correct Answers Periodic payment amounts such as principal & interest, estimated escrow, estimated monthly payment, and __________ must be disclosed in the Projected Payments section of the 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 - D The 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

  2. Page 2
  3. Page 3
    Read page 3 as text

    (d) 1% of the sales price - B _________ is the process of creating a new mortgage loan. (a) Origination (b) Funding (c) Underwriting (d) Servicing - A A 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

  4. Page 4
    Read page 4 as text

    A qualifying ratio that compares the borrower's proposed house payment to their gross monthly income is the __________. (a) Back ratio (b) Appraisal ratio (c) Front ratio (d) Loan to value ratio - C In 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 - B When 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 - B Which of the following is true regarding FHA loans?

  5. Page 5
    Read page 5 as text

    (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 - B The age of a property based upon the appraiser's assessment of the property's maintenance and upgrades is its __________. (a) Useful life (b) Market age (c) Chronological age (d) Effective age - D In 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 - C The loan to value ratio is: (a) The minimum down payment

  6. Page 6
    Read page 6 as text

    (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 - B An 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 - A Escrow 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 - C A claim, lien, charge, or liability attached to and binding real property is a(n) __________. (a) Clause (b) Easement (c) Encumbrance

13 more pages in the full document

Unlock it once and it stays in your library, ready to chat with or turn into flashcards.

Unlock the full document

More Other Exams & Certifications study materials

See all

Study this document with CramX

Once it is in your library, every tool can work from it.