#1
What is an amortization schedule in real estate finance?
A table showing the periodic payments towards a loan's principal and interest
ExplanationSchedule of loan payments showing principal and interest breakdown.
#2
Which of the following is NOT a common type of mortgage loan?
Equity mortgage
ExplanationType of mortgage not commonly found in typical mortgage options.
#3
What does 'REIT' stand for in real estate investment?
Real Estate Investment Trust
ExplanationInvestment vehicle for real estate holdings.
#4
What is 'equity' in real estate finance?
The difference between the market value of a property and the amount owed on the mortgage
ExplanationValue difference between property and mortgage.
#5
What does 'HVAC' stand for in real estate terminology?
Heating, Ventilation, and Air Conditioning
ExplanationHeating, cooling, and ventilation system.
#6
What is 'zoning' in real estate?
A set of regulations governing land use and development
ExplanationRules for land use and development.
#7
What does LTV stand for in real estate finance?
Loan-to-Value
ExplanationRatio measuring loan amount compared to property value.
#8
Which of the following factors typically affects mortgage interest rates?
All of the above
ExplanationVarious factors influencing mortgage rates.
#9
What is the role of an underwriter in real estate financing?
To assess the creditworthiness of borrowers and approve loans
ExplanationEvaluator of borrower credit and loan approval.
#10
What is a 'recourse loan' in real estate finance?
A loan where the borrower is personally liable for repayment, even if the collateral is insufficient to cover the debt
ExplanationLoan with borrower's personal liability.
#11
What is 'debt service coverage ratio' (DSCR) in real estate finance?
A ratio that measures a property's ability to cover its mortgage payments
ExplanationRatio indicating property's mortgage payment coverage.
#12
What is a 'land lease' in real estate?
A lease for the use of land without ownership of the land itself
ExplanationLease for land use without ownership.
#13
What is a 'cap rate' in real estate investment?
A rate of return on an investment property based on the income it generates
ExplanationReturn rate based on property income.
#14
What is the purpose of a feasibility study in real estate development?
To analyze the financial viability of a project
ExplanationAssessment of project financial viability.