financing — National Real Estate Exam Practice Questions

62 free National Real Estate Exam questions on financing: 18 easy, 35 medium, and 9 hard, every one exam-realistic and fully explained once you sign in. This is the fastest way to turn financing from a weakness into a scoring area — drill it in 10-question reps with immediate feedback.

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1. A borrower has a mortgage where the monthly payments are not large enough to cover the interest due. As a resu
2. An FHA loan requires the borrower to pay which type of insurance premium?
3. If a borrower fails to make payments and the lender invokes the 'due-on-sale' clause because the borrower sold
4. In a state following 'lien theory,' who holds the legal title to the property while the loan is outstanding?
5. What happens to Private Mortgage Insurance (PMI) under the Homeowners Protection Act when the loan balance rea
6. What is the primary function of the security instrument in a real estate loan?
7. What is the specific purpose of the 'acceleration clause' in a mortgage?
8. A borrower fails to make three consecutive mortgage payments… — Which clause in the promissory note allows for
9. Which of the following will the lender almost certainly require?
10. If the buyer defaults and the property is foreclosed, who is personally liable for any deficiency?
11. A lender who originates a loan and then sells it to the secondary market while continuing to collect payments
12. Which clause is the lender invoking?
13. A property is sold at a foreclosure auction for $300,000. Af… — Who is generally entitled to these surplus fun
14. Fannie Mae and Freddie Mac are often called GSEs. What does this stand for?
15. In a non-judicial foreclosure, which clause in the security instrument allows the trustee to sell the property
16. Mortgage-backed securities (MBS) are created when:
17. What happens to a conventional loan if its amount exceeds the limits set by Fannie Mae and Freddie Mac?
18. A buyer assumes a loan with a 3,200 monthly PITI payment. Th… — Who is responsible for correcting this shortag
19. If the property value increases to $350,000 and the buyer defaults, what happens to the $100,000 in equity?
20. Which of the following is true regarding the seller's 'substitution of entitlement'?
21. A seller has a 'non-recourse' loan. If a buyer assumes this loan, what is the impact on the lender's ability t
22. In a 'subject to' transaction, if the buyer defaults and the property is worth less than the debt, what is the
23. A buyer is obtaining a $200,000 conventional loan with a 10 percent down payment. The lender will likely requi
24. Under the Truth in Lending Act (Regulation Z), which of the following is considered a 'trigger term' in an adv
25. A property has a first mortgage of $180,000 and a second mortgage of $40,000. The second mortgage lender agree
26. What is the lender's primary recourse?
27. Generally speaking, paying discount points is most financially beneficial to a borrower who:
28. In a lien-theory state, what must a lender typically obtain from a court before a property can be sold at a fo
29. In the context of mortgage parties, the borrower is known as the:
30. Under the principle of 'hypothecation,' the borrower retains… — How do points relate to this concept?