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CHAMPIONS SCHOOL OF REAL ESTATE –
FINANCE EXAM 2025 QUESTIONS AND
ANSWERS .
- An amortizing loan is .... - correct answer - A loan with payments that
includes both the principle and interest
- A buyer is interested in buying a home. Interest are forecasted to go
down in the next few months, what type of loan should he secure? - correct answer - An ARM Loan
- In an ARM loan the index_____ - correct answer - Varies with fluctuation
in the Financial Market
- The fixed rate charge on an adjustable rate mortgage until the first
adjustment date - correct answer - Initial rate
- For the borrower planning to remain in his or her home in the long term
of the borrower who is adverse to risk the best possible is - correct answer - Fixed-rate mortgage
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- Ann appropriate loan for a property of significant rehabilitation - correct
answer - Construction to permanent loan
- Which of the following loan types would most likely contain a release
clause - correct answer - A blanket loan
- The loan to value ratio is - correct answer - Percentage of the lessor of
the appraise value of sales price that the lender will need to finance
- Which department of the government administers the FHA - correct
answer - HUD Department of housing and urban development
- FHA homes are available for - correct answer - Single-family, multi-
family ALL OF THE ABOVE
- Lenders bear less risk in making an FHS loan - correct answer - The
FHA is default insurance that will pat a claim to the lender in an event of default
- Which of the following is NOT and advantage of FHA Loans - correct
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answer - No downpayment