Skip to content

Call or Text 773-647-1830
[email protected]

Facebook Instagram Linkedin

Broker Courses
Continuing Education
- Broker Post License
Residential Leasing Agent
All Day Review
About
Contact
Log In

Broker Courses
Continuing Education
- Broker Post License
Residential Leasing Agent
All Day Review
About
Contact
Log In

$0.00 0 Cart

CHAPTER 6 QUIZ

CHAPTER 6: REAL ESTATE FINANCING
CHAPTER 6 QUIZ

Time limit: 0

Quiz Summary

0 of 57 Questions completed

Questions:

Information

You have already completed the quiz before. Hence you can not start it again.

Quiz is loading…

You must sign in or sign up to start the quiz.

You must first complete the following:

Results

Quiz complete. Results are being recorded.

Results

0 of 57 Questions answered correctly

Your time:

Time has elapsed

You have reached 0 of 0 point(s), (0)

Earned Point(s): 0 of 0, (0)
0 Essay(s) Pending (Possible Point(s): 0)

Categories

Not categorized 0%

Review
Answered
Correct
Incorrect

Question 1 of 57

1. Question

1. Under an installment contract, the title to the property is held by the:

Vendor
Correct Incorrect Correct answer

Vendee
Correct Incorrect Correct answer

Trustor
Correct Incorrect Correct answer

Trustee
Correct Incorrect Correct answer

Correct

Incorrect
Question 2 of 57

2. Question

2. The FHA:

Insures loans
Correct Incorrect Correct answer

Makes loans
Correct Incorrect Correct answer

Buy and sells loans
Correct Incorrect Correct answer

All of the above
Correct Incorrect Correct answer

Correct

Incorrect
Question 3 of 57

3. Question

3. The amount of a loan expressed as a percentage of the value of the real estate offered as collateral is the:

Amortization ratio
Correct Incorrect Correct answer

Loan-to-value ratio
Correct Incorrect Correct answer

Debt-to–equity ratio
Correct Incorrect Correct answer

Capital-use ratio
Correct Incorrect Correct answer

Correct

Incorrect
Question 4 of 57

4. Question

4. If the amount realized at a sheriff’s sale as part of a mortgage foreclosure is more than the amount of the indebtedness and expenses, then the excess belongs to:

The mortgagor
Correct Incorrect Correct answer

The mortgagee
Correct Incorrect Correct answer

The sheriff’s office
Correct Incorrect Correct answer

The county
Correct Incorrect Correct answer

Correct

Incorrect
Question 5 of 57

5. Question

5. The purpose of the Real Estate Settlement Procedures Act (RESPA) is to:

See that the buyers do not borrow more money that they can repay
Correct Incorrect Correct answer

Make real estate brokers more responsive to the needs of buyers
Correct Incorrect Correct answer

Help sellers know how much money is required to purchase the property
Correct Incorrect Correct answer

See that the buyers and sellers know all of their settlement costs
Correct Incorrect Correct answer

Correct

Incorrect
Question 6 of 57

6. Question

6. A person who assumes an existing mortgage loan is:

Not personally liable for the repayment of the debt
Correct Incorrect Correct answer

Not in danger of losing the property by default
Correct Incorrect Correct answer

Personally responsible for paying the principal balance
Correct Incorrect Correct answer

Generally released from liability, but not always
Correct Incorrect Correct answer

Correct

Incorrect
Question 7 of 57

7. Question

7. The interest in a property held by the owner in excess of any liens against it is called:

Hypothecation
Correct Incorrect Correct answer

Subordination
Correct Incorrect Correct answer

Leverage
Correct Incorrect Correct answer

Equity
Correct Incorrect Correct answer

Correct

Incorrect
Question 8 of 57

8. Question

8. Fannie Mae, Ginnie Mae, and Freddie Mac have in common the purpose of:

Originating residential mortgage loans
Correct Incorrect Correct answer

Purchasing existing mortgage loans
Correct Incorrect Correct answer

Insuring residential mortgage loans
Correct Incorrect Correct answer

Guaranteeing existing mortgage loans
Correct Incorrect Correct answer

Correct

Incorrect
Question 9 of 57

9. Question

9. A borrower obtained a $7,000 second mortgage loan for five years at 6 percent interest per annum. Monthly payments were $50. The final payment included the remaining outstanding principal balance. What type of loan is this?

A fully amortized loan
Correct Incorrect Correct answer

A straight loan
Correct Incorrect Correct answer

A partially amortized loan
Correct Incorrect Correct answer

An accelerated loan
Correct Incorrect Correct answer

Correct

Incorrect
Question 10 of 57

10. Question

10. The principal distinction between the primary mortgage market and the secondary mortgage market is in the:

Insuring versus the guaranteeing of mortgage loans
Correct Incorrect Correct answer

Origination versus the purchase of mortgage loans
Correct Incorrect Correct answer

Use of mortgages versus the use of deeds of trust
Correct Incorrect Correct answer

Use of discount points versus the use of origination fees
Correct Incorrect Correct answer

Correct

Incorrect
Question 11 of 57

11. Question

11. When compared with a 30-year payment period, taking out a loan with a 20-year payment period would result in all of the following EXCEPT:

Faster amortization
Correct Incorrect Correct answer

Higher monthly payments
Correct Incorrect Correct answer

Quicker equity buildup
Correct Incorrect Correct answer

Greater impound amounts
Correct Incorrect Correct answer

Correct

Incorrect
Question 12 of 57

12. Question

12. The type of mortgage loan that uses both real and personal property as security is a:

Blanket mortgage
Correct Incorrect Correct answer

Package mortgage
Correct Incorrect Correct answer

Purchase money mortgage
Correct Incorrect Correct answer

Wraparound mortgage
Correct Incorrect Correct answer

Correct

Incorrect
Question 13 of 57

13. Question

13. In a sale-and-Lease back arrangement the:

Seller retains legal title to the real estate
Correct Incorrect Correct answer

Buyer becomes the lessee
Correct Incorrect Correct answer

Broker will not earn a commission
Correct Incorrect Correct answer

Buyer becomes the lessor
Correct Incorrect Correct answer

Correct

Incorrect
Question 14 of 57

14. Question

14. Danni has owned her house for over 50 years. It has fallen into disrepair but, because she lives on a fixed income, she does not have the money to make the needed repairs. She has a considerable amount of equity in the house. What type of loan would probably best suit her needs?

A home equity loan
Correct Incorrect Correct answer

A reverse mortgage
Correct Incorrect Correct answer

A blanket loan
Correct Incorrect Correct answer

An open-ended loan
Correct Incorrect Correct answer

Correct

Incorrect
Question 15 of 57

15. Question

15. Under the lien theory, the equitable title to the property is held by the:

mortgagee.
Correct Incorrect Correct answer

mortgagor.
Correct Incorrect Correct answer

trustor.
Correct Incorrect Correct answer

trustee.
Correct Incorrect Correct answer

Correct

Incorrect
Question 16 of 57

16. Question

16. Charging more interest than is legally allowed is known as:

escheat.
Correct Incorrect Correct answer

usury.
Correct Incorrect Correct answer

a deficiency.
Correct Incorrect Correct answer

an estoppel.
Correct Incorrect Correct answer

Correct

Incorrect
Question 17 of 57

17. Question

17. A mortgagor is the one who:

Gives the mortgage
Correct Incorrect Correct answer

Holds the mortgage
Correct Incorrect Correct answer

provides the mortgage funds
Correct Incorrect Correct answer

forecloses on the mortgage
Correct Incorrect Correct answer

Correct

Incorrect
Question 18 of 57

18. Question

18. A promissory note:

may not be executed in connection with a real estate loan.
Correct Incorrect Correct answer

is an agreement to perform or not to perform certain acts.
Correct Incorrect Correct answer

is the primary evidence of a debt.
Correct Incorrect Correct answer

is a guarantee by a government agency.
Correct Incorrect Correct answer

Correct

Incorrect
Question 19 of 57

19. Question

19. A land contract provides for the:

sale of unimproved land only.
Correct Incorrect Correct answer

sale of real property under an option agreement.
Correct Incorrect Correct answer

conveyance of legal title at a future date.
Correct Incorrect Correct answer

immediate transfer of reversionary rights.
Correct Incorrect Correct answer

Correct

Incorrect
Question 20 of 57

20. Question

20. The finance fee charged by the lender to make the loan is a(n):

prepayment penalty.
Correct Incorrect Correct answer

advance interest payment.
Correct Incorrect Correct answer

loan origination fee.
Correct Incorrect Correct answer

prepayment of mortgage insurance.
Correct Incorrect Correct answer

Correct

Incorrect
Question 21 of 57

21. Question

21. Laura has just made the final payment on her home mortgage to her lender. There will still be a lien on her property until the lender records a(n):

satisfaction of mortgage.
Correct Incorrect Correct answer

re-conveyance of mortgage.
Correct Incorrect Correct answer

alienation of mortgage.
Correct Incorrect Correct answer

reversion of mortgage.
Correct Incorrect Correct answer

Correct

Incorrect
Question 22 of 57

22. Question

22. An existing mortgage loan can have its lien priority lowered through the use of a(n):

hypothecation agreement
Correct Incorrect Correct answer

satisfaction of mortgage
Correct Incorrect Correct answer

subordination agreement
Correct Incorrect Correct answer

re-conveyance of mortgage
Correct Incorrect Correct answer

Correct

Incorrect
Question 23 of 57

23. Question

23. If a property sold as a mortgage foreclosure does not sell for an amount sufficient to satisfy the outstanding mortgage debt, the mortgagor may be responsible for:

a default judgment.
Correct Incorrect Correct answer

a deficiency judgment.
Correct Incorrect Correct answer

liquidated damages.
Correct Incorrect Correct answer

punitive damages.
Correct Incorrect Correct answer

Correct

Incorrect
Question 24 of 57

24. Question

24. The clause in a deed of trust or mortgage that permits the lender to declare the entire unpaid balance immediately due and payable upon default is what clause?

Judgment
Correct Incorrect Correct answer

Escalator
Correct Incorrect Correct answer

Forfeiture
Correct Incorrect Correct answer

Acceleration
Correct Incorrect Correct answer

Correct

Incorrect
Question 25 of 57

25. Question

25. When a mortgage loan has been paid in full, it is important for the borrower to be sure that:

the paid note is placed in a safe deposit box.
Correct Incorrect Correct answer

he or she obtains a deed of partial reconveyance
Correct Incorrect Correct answer

the paid mortgage is returned to the lender.
Correct Incorrect Correct answer

a satisfaction of mortgage is recorded.
Correct Incorrect Correct answer

Correct

Incorrect
Question 26 of 57

26. Question

26. The clause in a mortgage instrument that would prevent the assumption of the mortgage by a new purchaser is a(n):

due-on-sale clause.
Correct Incorrect Correct answer

power of sale clause.
Correct Incorrect Correct answer

defeasance clause.
Correct Incorrect Correct answer

certificate of sale clause.
Correct Incorrect Correct answer

Correct

Incorrect
Question 27 of 57

27. Question

27. The seller agrees to sell the house to the buyer for $200,000. The buyer was unable to qualify for a mortgage loan for this amount so the seller and buyer enter into a contract for deed. The interest the buyer has in the property under a contract for deed is:

legal title.
Correct Incorrect Correct answer

equitable title.
Correct Incorrect Correct answer

joint title.
Correct Incorrect Correct answer

mortgagee in possession.
Correct Incorrect Correct answer

Correct

Incorrect
Question 28 of 57

28. Question

28. Mortgage lenders want assurance that future real estate taxes will be paid. The most common way to do this is to require the borrower to:

obtain title insurance.
Correct Incorrect Correct answer

sign a note.
Correct Incorrect Correct answer

pay into an impound account.
Correct Incorrect Correct answer

submit paid tax receipts.
Correct Incorrect Correct answer

Correct

Incorrect
Question 29 of 57

29. Question

29. If a buyer of an $185,000 home obtains a $150,000 mortgage with 4 points, how much will the lender charge at closing?

$6,000
Correct Incorrect Correct answer

$3,400
Correct Incorrect Correct answer

$2,000
Correct Incorrect Correct answer

$40,000
Correct Incorrect Correct answer

Correct

Incorrect
Question 30 of 57

30. Question

30. In absence of an agreement to the contrary, the mortgage having priority will be the one:

for the highest amount.
Correct Incorrect Correct answer

that was recorded first.
Correct Incorrect Correct answer

that was the first mortgage.
Correct Incorrect Correct answer

that is a construction loan.
Correct Incorrect Correct answer

Correct

Incorrect
Question 31 of 57

31. Question

31. The pledging of property as security for payment of a loan is:

disintermediation.
Correct Incorrect Correct answer

equity.
Correct Incorrect Correct answer

hypothecation.
Correct Incorrect Correct answer

subordination.
Correct Incorrect Correct answer

Correct

Incorrect
Question 32 of 57

32. Question

32. The purpose of a mortgage is to:

provide security for the loan.
Correct Incorrect Correct answer

convey title of the property to the lender.
Correct Incorrect Correct answer

restrict the borrower's use of the property.
Correct Incorrect Correct answer

give title to a third party.
Correct Incorrect Correct answer

Correct

Incorrect
Question 33 of 57

33. Question

33. Which of the following would NOT be associated with a mortgage?

acceleration
Correct Incorrect Correct answer

defeasance
Correct Incorrect Correct answer

grantor
Correct Incorrect Correct answer

assignment of rents
Correct Incorrect Correct answer

Correct

Incorrect
Question 34 of 57

34. Question

34. Illinois is most accurately referred to as what type of mortgage theory state?

Title
Correct Incorrect Correct answer

Lien
Correct Incorrect Correct answer

Trust
Correct Incorrect Correct answer

Intermediate
Correct Incorrect Correct answer

Correct

Incorrect
Question 35 of 57

35. Question

35. Illinois statutory usury ceiling for real estate financing is:

20 percent.
Correct Incorrect Correct answer

35 percent.
Correct Incorrect Correct answer

3 percent over prime.
Correct Incorrect Correct answer

There is no ceiling
Correct Incorrect Correct answer

Correct

Incorrect
Question 36 of 57

36. Question

36. For purposes of mortgage foreclosures, Illinois is classified as what type of state?

Strict foreclosure
Correct Incorrect Correct answer

Judicial foreclosure
Correct Incorrect Correct answer

Non-judicial foreclosure
Correct Incorrect Correct answer

Redemptive non-foreclosure
Correct Incorrect Correct answer

Correct

Incorrect
Question 37 of 57

37. Question

37. Which of the following pairs of terms is considered synonymous?

Interim financing and construction loan
Correct Incorrect Correct answer

Construction loan and pass-through loan
Correct Incorrect Correct answer

Pass-through loan and take-out loan
Correct Incorrect Correct answer

Take-out loan and construction loan
Correct Incorrect Correct answer

Correct

Incorrect
Question 38 of 57

38. Question

38. The type of real estate loan that allows the lender to increase the outstanding balance of a loan up to the original sum in the note while advancing additional funds is the:

wraparound mortgage.
Correct Incorrect Correct answer

open-end mortgage.
Correct Incorrect Correct answer

growing-equity mortgage.
Correct Incorrect Correct answer

graduated-payment mortgage.
Correct Incorrect Correct answer

Correct

Incorrect
Question 39 of 57

39. Question

39. The Truth-in-Lending Law, implemented by Regulation Z, sets forth certain requirements regarding loans to individuals for all of the following purposes EXCEPT loans for:

household use improvements.
Correct Incorrect Correct answer

business use.
Correct Incorrect Correct answer

room additions.
Correct Incorrect Correct answer

swimming pools.
Correct Incorrect Correct answer

Correct

Incorrect
Question 40 of 57

40. Question

40. An FHA-insured mortgage loan would MOST LIKELY be obtained from which of the following?

The Federal Housing Administration
Correct Incorrect Correct answer

The Department of Housing and Urban Development
Correct Incorrect Correct answer

Any qualified lending institution
Correct Incorrect Correct answer

Any qualified insuring institution
Correct Incorrect Correct answer

Correct

Incorrect
Question 41 of 57

41. Question

41. Which of the following statements is true?

The priority of a mortgage is determined by the date on which it was executed.
Correct Incorrect Correct answer

A mortgage document contains no covenants or promises on the part of the borrower.
Correct Incorrect Correct answer

A deed of trust is typically conveyed by the trustor to the beneficiary.
Correct Incorrect Correct answer

A buyer does not have to be a veteran to assume a VA loan.
Correct Incorrect Correct answer

Correct

Incorrect
Question 42 of 57

42. Question

42. Discount points charged on a VA guaranteed mortgage loan can be paid by any of the following EXCEPT the:

buyer.
Correct Incorrect Correct answer

seller.
Correct Incorrect Correct answer

buyer and seller.
Correct Incorrect Correct answer

mortgage lender.
Correct Incorrect Correct answer

Correct

Incorrect
Question 43 of 57

43. Question

43. A real estate loan payable in periodic installments that are sufficient to pay the principal in full during the term of the loan is called a(n):

conventional loan.
Correct Incorrect Correct answer

straight loan.
Correct Incorrect Correct answer

participation loan.
Correct Incorrect Correct answer

amortized loan.
Correct Incorrect Correct answer

Correct

Incorrect
Question 44 of 57

44. Question

44. An extension of credit from a seller to a buyer to allow the buyer to complete the transaction is called a:

growing equity mortgage.
Correct Incorrect Correct answer

purchase money mortgage.
Correct Incorrect Correct answer

package mortgage
Correct Incorrect Correct answer

blanket mortgage.
Correct Incorrect Correct answer

Correct

Incorrect
Question 45 of 57

45. Question

45. From which of the following would a borrower most likely obtain a residential real estate mortgage loan?

An insurance company
Correct Incorrect Correct answer

A pension fund
Correct Incorrect Correct answer

An endowment fund
Correct Incorrect Correct answer

A commercial lender
Correct Incorrect Correct answer

Correct

Incorrect
Question 46 of 57

46. Question

46. Regulation Z applies to:

business loans.
Correct Incorrect Correct answer

real estate sales agreements.
Correct Incorrect Correct answer

commercial loans under $10,000.
Correct Incorrect Correct answer

personal credit transactions under $25,000.
Correct Incorrect Correct answer

Correct

Incorrect
Question 47 of 57

47. Question

47. In a graduated payment loan:

mortgage payments decrease.
Correct Incorrect Correct answer

mortgage payments balloon in 5 years.
Correct Incorrect Correct answer

mortgage payments increase.
Correct Incorrect Correct answer

the interest rate on the loan adjusts annually.
Correct Incorrect Correct answer

Correct

Incorrect
Question 48 of 57

48. Question

48. Which of the following normally purchases mortgages in the secondary mortgage market?

Mortgage bankers
Correct Incorrect Correct answer

Ginnie Mae
Correct Incorrect Correct answer

Federal Housing Administration
Correct Incorrect Correct answer

Veterans Administration
Correct Incorrect Correct answer

Correct

Incorrect
Question 49 of 57

49. Question

49. What type of loan allows for the release of a portion of the property as the loan is paid down:

blanket loan.
Correct Incorrect Correct answer

reverse annuity mortgage.
Correct Incorrect Correct answer

open ended loan.
Correct Incorrect Correct answer

home equity loan.
Correct Incorrect Correct answer

Correct

Incorrect
Question 50 of 57

50. Question

50. The type of loan that will MOST LIKELY have the lowest loan-to-value ratio is a:

conventional loan without PMI.
Correct Incorrect Correct answer

FHA loan.
Correct Incorrect Correct answer

PMI loan.
Correct Incorrect Correct answer

VA loan.
Correct Incorrect Correct answer

Correct

Incorrect
Question 51 of 57

51. Question

51. A lender may protect its interest in a mortgage loan by obtaining additional security from:

private mortgage insurance.
Correct Incorrect Correct answer

title insurance.
Correct Incorrect Correct answer

the borrower's note.
Correct Incorrect Correct answer

impound accounts.
Correct Incorrect Correct answer

Correct

Incorrect
Question 52 of 57

52. Question

52. A lender will take certain factors into consideration when deciding whether to grant a borrower a mortgage loan. All of the following are legitimate factors EXCEPT:

the marital status of the borrower.
Correct Incorrect Correct answer

the creditworthiness of the borrower.
Correct Incorrect Correct answer

the amount of the borrower's income.
Correct Incorrect Correct answer

the ability of the borrower to make the payments
Correct Incorrect Correct answer

Correct

Incorrect
Question 53 of 57

53. Question

53. One of the ways lenders increase their revenue is by servicing loans. All of the following are activities of servicing loans EXCEPT:

collecting payments.
Correct Incorrect Correct answer

paying real estate taxes from escrow accounts.
Correct Incorrect Correct answer

renegotiating interest rates.
Correct Incorrect Correct answer

sending overdue notices.
Correct Incorrect Correct answer

Correct

Incorrect
Question 54 of 57

54. Question

54. Which of the following, standing alone, would be a legal way to advertise loan terms?

A. $499 per month
Correct Incorrect Correct answer

$1,000 down
Correct Incorrect Correct answer

8% interest rate
Correct Incorrect Correct answer

Assumable mortgages
Correct Incorrect Correct answer

Correct

Incorrect
Question 55 of 57

55. Question

55. A developer had a mortgage loan on his entire housing development. When he sold a lot to a buyer, he was able to deliver title to that lot free of the mortgage lien by obtaining a partial release. What type of loan did the developer have?

Blanket mortgage
Correct Incorrect Correct answer

Purchase money mortgage
Correct Incorrect Correct answer

Package mortgage
Correct Incorrect Correct answer

Open-end mortgage
Correct Incorrect Correct answer

Correct

Incorrect
Question 56 of 57

56. Question

56. A borrower and seller have agreed to split the discount points. The sale price of the property was $125,000 and the borrower secured a 75% loan. If the lender charged four discount points and a one percent origination fee, how much did the borrower and the seller each pay?

$5,000
Correct Incorrect Correct answer

$3,750
Correct Incorrect Correct answer

$1,875
Correct Incorrect Correct answer

$1,785
Correct Incorrect Correct answer

Correct

Incorrect
Question 57 of 57

57. Question

57. A borrower has secured an FHA insured loan. This means that the FHA will insure which of the following against a possible loss?

buyer
Correct Incorrect Correct answer

seller
Correct Incorrect Correct answer

lender
Correct Incorrect Correct answer

broker
Correct Incorrect Correct answer

Correct

Incorrect

Transcript Request
Schedule Your Exam
Sitemap

Call or Text: 773-647-1830
Email: [email protected]

SUPPORT HOURS
Monday – Friday: 7:00AM – 5:30PM
Saturday - Sunday: 8:30 AM – 1:30 PM

Facebook Instagram Linkedin

Want to receive Promotional and Informational Emails?

Name

Phone Number

Email

CHAPTER 6 QUIZ

Quiz Summary

Information

Results

Results

Categories

1. Question

2. Question

3. Question

4. Question

5. Question

6. Question

7. Question

8. Question

9. Question

10. Question

11. Question

12. Question

13. Question

14. Question

15. Question

16. Question

17. Question

18. Question

19. Question

20. Question

21. Question

22. Question

23. Question

24. Question

25. Question

26. Question

27. Question

28. Question

29. Question

30. Question

31. Question

32. Question

33. Question

34. Question

35. Question

36. Question

37. Question

38. Question

39. Question

40. Question

41. Question

42. Question

43. Question

44. Question

45. Question

46. Question

47. Question

48. Question

49. Question

50. Question

51. Question

52. Question

53. Question

54. Question

55. Question

56. Question

57. Question