#1
Which type of loan typically has a fixed interest rate throughout the loan term?
Adjustable-rate mortgage (ARM)
Balloon mortgage
Fixed-rate mortgage
Interest-only mortgage
#2
What does LTV stand for in real estate financing?
Loan to Value
Land Title Verification
Lease Term Variation
Loan Term Validation
#3
In real estate, what is PMI designed to protect against?
Property Market Inflation
Potential Mortgage Irregularities
Private Mortgage Insurance
Property Maintenance Issues
#4
What is the debt-to-income ratio used for in the context of real estate financing?
Assessing credit score
Evaluating property value
Determining loan eligibility
Calculating property taxes
#5
What is the purpose of a bridge loan in real estate financing?
To finance the construction of bridges
To provide temporary financing until permanent financing is secured
To fund real estate purchases exclusively
To facilitate international real estate transactions
#6
In real estate, what is the role of an appraiser?
To assess the market value of a property
To sell properties on behalf of the owner
To provide legal advice on property transactions
To design and plan real estate developments
#7
What is the role of a title company in a real estate transaction?
Handling property appraisals
Providing homeowner's insurance
Ensuring a clear title and facilitating the closing process
Determining property tax assessments
#8
What does the term 'escrow' mean in real estate?
A special account for holding funds during a real estate transaction
A type of mortgage loan
A legal document outlining property boundaries
An insurance policy for real estate investments
#9
Which of the following is a type of government-backed loan program in the United States?
Jumbo loan
Conventional loan
FHA loan
Subprime loan
#10
What does the term 'amortization' refer to in the context of real estate financing?
The process of increasing property value over time
The gradual repayment of a loan through periodic installments
The legal transfer of property ownership
The assessment of property tax
#11
Which type of loan may be suitable for a borrower with a fluctuating income, such as a commission-based salesperson?
Fixed-rate mortgage
Adjustable-rate mortgage (ARM)
Interest-only mortgage
FHA loan
#12
What is a prepayment penalty in the context of real estate financing?
A fee charged for paying off a loan before the scheduled due date
An advance payment on property taxes
A penalty for late mortgage payments
A charge for property title search
#13
What is the primary purpose of a home inspection during the home buying process?
To estimate property taxes
To assess the market value of the property
To identify potential issues or defects in the property
To verify the borrower's creditworthiness
#14
In real estate, what is the difference between a leasehold and a freehold property?
The type of mortgage associated with the property
The duration of ownership rights
The property's location
The size of the property