Broker Questions

Question 1

Who is responsible for the day of closing?
A. Buyer
B. Seller
C. Lender
D. Buyer and seller equally

Answer 1

B. Seller

Question 2

Which is true about adjusted interest?

Answer 2

It is interest due on the buyers new loan from the closing date to the last day of the month

Question 3

Which best describes accrued interest?

Answer 3

Interest on the seller’s existing loan from the date of the last payment up to and including the closing date.

Question 4

Which of the following best describes a 90% loan in real estate?

Answer 4

Any loans whose value is more than 80% up to 90%.

Question 5

Total private mortgage insurance due at closing on 90% loan

Answer 5

2% of the sales price.

Question 6

If borrower elects private mortgage insurance in his payment at 95% loan how much of the total must he pay down at closing

Answer 6

30%

Question 7

What is the formula for the private mortgage insurance in monthly payment if its a 90% loan?

Answer 7

Loan amount times .0025 /12

Question 8

How many months of insurance premiums can be collected at closing for borrowers reserve escrow account?

Answer 8

3 months