Question 1

A loan is set up so that the borrower's loan payments are for the same amount each month. A portion of each payment goes to interest, and a portion goes to principal, and the loan balance will be zero at the end of the loan term. Which type of loan is this?

Options :

A : Fully amortizing

B : Negatively amortizing

C : Partially amortizing

D : Straight amortizing

Answer: A

Question 2

A comparable property sold for $300,000. It has a finished basement, while the subject property does not. The finished basement contributes $10,000 to value. What is the adjusted value of the comparable property?

Options :

A : $290,000

B : $300,000

C : $310,000

D : The price of the comparable property is never adjusted.

Answer: A

Question 3

A seller sold their house for $600,000. They are responsible for paying a 6% commission to the listing broker, closing costs of $8,500, and the remaining balance on their prior mortgage loan of $60,000. How much will they net on the sale?

Options :

A : $499,610

B : $495,500

C : $531,500

D : $564,000

Answer: B

Question 4

A buyer's stable monthly income is $6,800. Every month they pay a $485 car payment, $200 in a revolving credit payment, and $1,500 in alimony. Using ratios of 31% and 43%, what is the maximum monthly mortgage payment they would qualify for on an FHA-insured mortgage loan?

Options :

A : $739

B : $1,763

C : $1,972

D : $2,108

Answer: B

Question 5

Under the North Carolina Timeshare Act, a timeshare developer must allow a buyer to cancel a purchase contract without penalty for how long after signing the contract?

Options :

A : 3 days

B : 5 days

C : 10 days

D : Under the law, there is no right of cancellation

Answer: D

Free NCREC-Broker-N Mock Exam – Practice Online Confidently

Buying Options: