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

B. It's a lump sum payment.

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

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 interest rate from adjustable to fixed

B. To convert the interest rate from fixed to adjustable

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

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

Question #3

Which of the following statements is true about conventional loans?

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

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

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

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

Question #4

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

A. Reverse annuity mortgage

B. Reverse annual mortgage

C. Retired American mortgage

D. Renewed annual mortgage