Read 'Chapter 0: Course Material' & answer the following question(s): |
1. | The ____________ is referred to as a closing, settlement, or escrow. |
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2. | Usury occurs when the lender |
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3. | What types of credit transactions does Regulation Z cover? I) Credit in excess of $25,000; II) All real estate transactions involving consumers; III) All real estate transactions involving corporations |
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4. | Regulation Z requires disclosure of credit information regarding: I) finance charges; II) APR; or III) date of closing? |
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5. | Which of the following must be disclosed as a finance charge under Regulation Z? |
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6. | The annual percentage rate (APR) is the annual cost of credit and is |
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7. | A mortgage lender's practice of refusing to make mortgage loans in certain neighborhoods because of high risk or lack of profit potential is called |
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8. | In order to prevent the practice of redlining and divestment in central city areas, Congress passed the ________________. |
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9. | All federally chartered savings and loan associations must be members of the: I) Federal Home Loan Bank; II) Federal Deposit Insurance Corporation; III) Federal Reserve System; IV) Federal Savings Insurance System. |
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10. | Fannie Mae and Freddie Mac operate in which mortgage market? |
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11. | Which of the following is a buyer in the secondary mortgage market? |
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12. | The mortgage purchase procedure used by the FNMA is conducted through an auction process referred to as a (an) |
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13. | When using the fully amortized level payment mortgage |
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14. | In a construction loan mortgage |
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15. | The most predominant form of conventional mortgage is the |
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16. | A conventional loan would differ from a FHA or VA loan in that the conventional mortgage loan would have |
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17. | If a purchaser using FHA financing is paying more than the appraised value, the difference between the appraised value and the sales price |
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18. | If the buyer gives a note or bond and a mortgage to the seller as part of the purchase price, the resulting mortgage is commonly referred to as a (an) |
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19. | If the buyer of a home wanted to include in the terms of a mortgage the financing of such items as a stove, refrigerator and air conditioning, the mortgage used would be a (an) |
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20. | A buyer agrees to purchase a tract of land for $40,000. The buyer is only able to get a mortgage for $32,000. Rather than let the deal fall through, the seller agrees to accept $4,000 cash and a note for the remaining $4,000. This is known as what? |
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21. | A mortgage loan which gives the mortgages a fixed interest return plus a percentage of gross sales is called a (an) |
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22. | ________________________ is NOT one of the indexes used in adjustable rate mortgage. |
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23. | The term lenders use to describe the relative amount of money they will loan on a given piece of property is the |
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24. | Before you invest any funds, you should evaluate |
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25. | What is NOT a source of investment funds? |
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26. | Which of the following is least important in making investment decisions? |
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27. | Investment vehicles do NOT include |
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28. | Which of the following is NOT an example of real assets? |
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29. | A principal disadvantage of real estate is that it does NOT provide a hedge against |
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30. | A rapid increase in inflation will cause interest rates to _________ , and bond and stock prices to __________. |
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31. | The return on investment typically comes from two sources: __________ and capital gains (losses). |
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32. | Current income is derived from income property by |
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33. | An advantage to buying a home to the person who is to occupy it as his or her personal dwelling is its |
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34. | Which of the following is NOT an advantage of buying has over renting? |
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35. | Owning a(n) _____________ is still the best tax shelter there is. |
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36. | Considerations in arriving at how much one should pay for a home include all the following EXCEPT |
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37. | The most a typical home buyer should spend on housing costs is generally ___________ of his or her monthly take home pay |
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38. | You should consider a fixed rate loan over an ARM, if you |
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39. | The principle of maximizing the use of other people's money (OPM), providing a large percentage of return on a relatively small outlay is called |
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40. | Depreciation taken as a deduction on annual income tax is a form of |
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41. | Types of direct real estate investments consists of all the following EXCEPT |
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42. | An example of commercial property is |
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43. | One drawback to investing in real estate is the |
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44. | __________________ is NOT a form of real estate investment |
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45. | A closed end investment company that invests money in mortgages and various types of investment real estate is called |
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46. | REITs differ from other real estate investments because |
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47. | What type of REITs invests in income-producing properties? |
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48. | Certain terms used in real estate investments have applications similar to those used in security analysis. For example, the price earnings (P/E) ratio found in the analysis of stocks is equivalent to _____________ in real estate investment analysis. |
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49. | Which of the following is equal to before-tax cash flow from operations? |
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50. | Calculate the capitalization rate for the following investment: Net operating income (NOI) = $18,750; Purchase price = $150,000; Equity = 20% |
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