The CE Shop » Sales License » CA Real Estate Finance Course » 2021

Question #1

Which of the following is true about a home equity line of credit?

A. Any amount used must be repaid before additional funds can be accessed.

B. It's a lump sum payment.

C. A borrower can use the funds as needed, repay them, and borrow them again.

D. It takes priority over the original financing for the home.

Question #2

What's the purpose of the fixed/adjustable rate note?

A. To convert the loan from an adjustable rate to a fixed rate

B. To convert the loan from a fixed rate to an adjustable rate

C. To convert the interest rate from adjustable to fixed

D. To convert the interest rate from fixed to adjustable

Question #3

Which of the following statements is true about conventional loans?

A. They're guaranteed by the U.S. Department of Veterans Affairs.

B. They're provided by the U.S. Department of Agriculture.

C. They're insured by the Federal Housing Administration.

D. Originators usually package and sell the loans on the secondary market.

Question #4

A RAM is a type of equity financing. What does RAM stand for?

A. Retired American mortgage

B. Reverse annuity mortgage

C. Reverse annual mortgage

D. Renewed annual mortgage