Principles of Real Estate Finance Quiz

Explore principles of real estate finance with 14 questions covering amortization, loans, LTV, interest rates, REITs, and more!

Practice Learn Test

What is an amortization schedule in real estate finance?

A document outlining the terms of a mortgage loan

A table showing the periodic payments towards a loan's principal and interest

A legal contract between a buyer and seller

A report on property market trends

Which of the following is NOT a common type of mortgage loan?

Fixed-rate mortgage

Adjustable-rate mortgage

Balloon mortgage

Equity mortgage

What does 'REIT' stand for in real estate investment?

Real Estate Investment Trust

Real Estate Inspection Team

Rental Efficiency Improvement Technique

Real Estate Investment Tax

What is 'equity' in real estate finance?

The difference between the market value of a property and the amount owed on the mortgage

The total value of assets owned by an individual or company

A type of mortgage loan

A measure of property liquidity

What does 'HVAC' stand for in real estate terminology?

Home Value Assessment and Certification

Hazardous Ventilation and Air Conditioning

Heating, Ventilation, and Air Conditioning

Home Valuation and Appraisal Consultation

What is 'zoning' in real estate?

A method of land surveying

A process for evaluating property value

A set of regulations governing land use and development

A type of property tax assessment

What does LTV stand for in real estate finance?

Loan-to-Value

Listing-to-Value

Lien-to-Value

Leverage-to-Value

Which of the following factors typically affects mortgage interest rates?

Inflation rates

Credit scores

Government regulations

All of the above

What is the role of an underwriter in real estate financing?

To inspect properties for defects

To assess the creditworthiness of borrowers and approve loans

To negotiate property prices

To manage property maintenance

#10

What is a 'recourse loan' in real estate finance?

A loan secured by collateral

A loan where the borrower is personally liable for repayment, even if the collateral is insufficient to cover the debt

A loan with a fixed interest rate

A loan provided by a government agency

#11

What is 'debt service coverage ratio' (DSCR) in real estate finance?

A ratio used to determine property tax liability

A ratio that measures a property's ability to cover its mortgage payments

A ratio indicating the level of property insurance coverage

A ratio representing the amount of debt on a property

#12

What is a 'land lease' in real estate?

A lease for a residential property

A lease for agricultural land

A lease for commercial land

A lease for the use of land without ownership of the land itself

#13

What is a 'cap rate' in real estate investment?

A rate of return on an investment property based on the income it generates

A limit on the maximum amount of a mortgage loan

A legal restriction on property use

A measure of property depreciation

#14

What is the purpose of a feasibility study in real estate development?

To analyze the financial viability of a project

To determine property tax rates

To estimate construction costs

To assess environmental impact