CA Real Estate Finance Course » 2021 » Sec 13 Unit 1 Exam

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Question #1
What's another term for back-end ratio?
A.   Housing ratio
B.   Total debt ratio
C.   Payment ratio
D.   Loan-to-value ratio
Question #2
A buyer is purchasing a property for $500,000. His lender’s loan-to-value ratio is 90%. How much is the buyer financing?
A.   $450,000
B.   $50,000
C.   $400,000
D.   $500,000
Question #3
A buyer anticipates a house payment of $1,000 per month, with monthly homeowner association fees of $150. The buyer also has a car payment of $400 per month. If the buyer earns a monthly gross income of $5,000, what is the total debt ratio?
A.   28%
B.   20%
C.   23%
D.   31%
Question #4
Which of the following describes housing ratio?
A.   A calculation that looks at all recurring (or installment) debt, such as monthly mortgage, car, credit, and loan payments, as a percentage of the borrower's monthly gross income
B.   A calculation of a borrower's monthly housing obligation, including principal, interest, taxes, insurance, and any homeowners or condo association fees, as a percentage of the monthly gross income
C.   A calculation that illustrates a borrower's principal payment compared to interest
D.   A calculation that describes the amount being borrowed compared to the value of a property
Question #5
Jane’s offer of $310,000 was accepted, but the appraisal just came in at $300,000. Jane plans to finance $250,000. What's the loan-to-value ratio?
A.   81%
B.   97%
C.   82%
D.   83%
Question #6
A buyer is purchasing a home appraised at $480,000. The buyer is obtaining a 90% loan, and the lender will charge an origination fee of 1% at closing. How much will the loan origination fee be?
A.   $4,728
B.   $4,320
C.   $4,800
D.   $4,712
Question #7
What's another term for front-end ratio?
A.   Total debt
B.   Payment
C.   Housing
D.   Loan-to-value
Question #8
What's a typical loan-to-value ratio for an FHA loan?
A.   95%
B.   96.5%
C.   As much as 100%
D.   70% to 95%

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