Chapter 13 Practice Questions

Chapter 13: Residential Mortgages. Practice Florida real estate questions and review the explanation for each answer.

33 practice questions

Chapter 13 Which two instruments are created when a mortgage loan is originated?
Chapter 13 Which instrument creates the lien interest and pledges the property as security for the debt?
Chapter 13 In a Title Theory state, who holds the title to the mortgaged property?
Chapter 13 Florida is considered a:
Chapter 13 Once a mortgage is paid in full, Florida statute requires the mortgagee to send the recorded satisfaction to the mortgagor within:
Chapter 13 The priority of a mortgage lien is determined by:
Chapter 13 Which clause allows the lender to demand immediate payment of the entire unpaid loan balance if the borrower defaults?
Chapter 13 Which clause prevents another party from assuming the mortgage by allowing the lender to call the loan due if the property is sold?
Chapter 13 In a Lien Theory state, what is the function of the Defeasance clause?
Chapter 13 The Loan-to-Value (LTV) ratio is calculated as a percentage of:
Chapter 13 A borrower’s equity is calculated by:
Chapter 13 When a lender collects monthly installments for property taxes and hazard insurance, where are these funds held?
Chapter 13 One discount point is equal to what percentage of the loan amount?
Chapter 13 By approximately how much does purchasing one discount point increase the lender’s yield?
Chapter 13 What legal instrument transfers ownership of a mortgage and note from one lender to another?
Chapter 13 In a Contract for Deed financing arrangement:
Chapter 13 What allows a mortgagor to prevent foreclosure by paying the principal, interest, and expenses due?
Chapter 13 A home was purchased with a down payment of $150,000 and a loan of $600,000 at 6.5% interest for 30 years. Monthly payments are $3,792.41. What is the loan-to-value ratio?
Chapter 13 The loan-to-value ratio is 80%. A buyer wants to acquire a property with a purchase price of $580,000. Calculate the required down payment.
Chapter 13 Your clients purchased a home for $625,000. They financed the purchase with an 80% conventional loan. The mortgagee charged 2.5 points. Calculate the actual cost of the points.
Chapter 13 A lender charged 6.5% interest plus 5 discount points. What is the approximate yield on this loan?
Chapter 13 In a Florida mortgage transaction, what specific document serves as the legal proof of the borrower’s personal debt and promise to repay?
Chapter 13 Mary is selling her home to John and has agreed to provide seller financing. Under their agreement, Mary will retain legal title to the property until John has fully repaid the debt. What is this specific type of financing arrangement called?
Chapter 13 John borrows money from a bank to buy a home. In this transaction, John is the:
Chapter 13 When a vendee (buyer) buys a home with the terms “subject to the mortgage,” which of the following is true?
Chapter 13 Dina purchased a home 30 years ago and just made the final mortgage payment. What document must the mortgagee file on their behalf?
Chapter 13 What is the specific purpose of a prepayment penalty clause in a mortgage agreement?
Chapter 13 A buyer purchases a property and agrees to take over the seller's existing mortgage. The lender evaluates the buyer, approves them, and executes a formal agreement releasing the original seller from any future liability for the debt. What is this legal process called?
Chapter 13 What is the main purpose of an estoppel certificate in a real estate transaction?
Chapter 13 A lis pendens filed with the county clerk becomes a type of:

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