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

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

C. It's a lump sum payment.

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

Question #2

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

A. To convert the interest rate from fixed to adjustable

B. To convert the interest rate from adjustable to fixed

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. They're insured by the Federal Housing Administration.

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

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

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. Renewed annual mortgage

B. Reverse annual mortgage

C. Retired American mortgage

D. Reverse annuity mortgage