CA Real Estate Principles Course » 2021 » Section 14 Unit 4 Exam

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Question #1
What's it called when a number of percentage points is added to the index to determine the rate for an adjustable rate mortgage?
A.   Lifetime cap
B.   Usury
C.   Initial cap
D.   Margin
Question #2
Which of these is a type of gap financing that's used temporarily until the consumer can obtain permanent financing?
A.   Bridge loan
B.   Blanket mortgage
C.   Balloon payment
D.   Wrap-around mortgage
Question #3
Vanessa owns a commercial space. She’d like to free up the capital she has invested in the place for other purposes, while continuing to occupy the space. She sells the property, then rents the space back from the new owner. What is this an example of?
A.   Sale-leaseback
B.   Wraparound mortgage
C.   Purchase money mortgage
D.   Lease-sellback
Question #4
With which type of mortgage does the interest rate vary according to a specified index?
A.   Balloon rate
B.   Adjustable rate
C.   Fixed rate
D.   Straight term

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