Accounting
Anthropology
Archaeology
Art History
Banking
Biology & Life Science
Business
Business Communication
Business Development
Business Ethics
Business Law
Chemistry
Communication
Computer Science
Counseling
Criminal Law
Curriculum & Instruction
Design
Earth Science
Economic
Education
Engineering
Finance
History & Theory
Humanities
Human Resource
International Business
Investments & Securities
Journalism
Law
Management
Marketing
Medicine
Medicine & Health Science
Nursing
Philosophy
Physic
Psychology
Real Estate
Science
Social Science
Sociology
Special Education
Speech
Visual Arts
Question
FHA mortgage insurance covers any lender loss after conveyance of title of the property to the U.S. Department of Housing and Urban Development (HUD). FHA mortgage insurance requires two premiums to be paid: the UFMIP (up-mortgage insurance premium) and the MIP (monthly insurance premium). Currently, the UFMIP is what percentage of the loan for normal loans used to purchase a personal residence?
A. 1.0%
B. 1.5%
C. 2.0%
D. 4.0%
Answer
This answer is hidden. It contains 1 characters.
Related questions
Q:
Which of the following types of direct co-ownership combines single person ownership with tenancy in common?
A. Cooperative
B. Tenancy by the entirety
C. Condominium
D. Partnership
Q:
Which of the following types of direct co-ownership is a form of joint tenancy for husband and wife created by marriage that protects each spouse from liens arising from either spouse alone?
A. Tenancy in common
B. Tenancy by the entirety
C. Condominium
D. Tenancy at Will
Q:
A lien is an interest in real property that serves as security for an obligation. Which of the following is an example of a general lien?
A. Property tax and assessment lien
B. Mortgage lien
C. Lien arising from a court judgment unrelated to ownership of the property
D. Mechanics lien
Q:
While leasehold interests are considered estates, they differ from freehold estates in all of the following respects EXCEPT:
A. Leasehold estates are limited in time.
B. The right of disposition is diminished with a leasehold estate.
C. Leasehold estates are not titled interests.
D. Leasehold estates are possessory interests
Q:
Suppose an older homeowner lives adjacent to an expanding university that is interested in acquiring her residence for future university use. To allow the homeowner to continue to retain all rights of exclusive possession, use, and enjoyment during her lifetime, yet provide the university with the right of disposition, the university may want to purchase a(n):
A legal life estate with remainder interest
B. conditional fee absolute with reverter interest
C. ordinary life estate with remainder interest
D. tenancy for years
Q:
Which of the following types of ownership estates is the most complete bundle of rights, and therefore carries the greatest value?
A. Fee simple absolute
B. Fee simple conditional
C. Ordinary life estate
D. Legal life estate
Q:
Property rights can be divided into two classes, real and personal. Which of the following is an example of real property?
A. Vehicles
B. Stocks and bonds
C. Patents
D. Commercial building
Q:
A primary determinant of the feasibility of new construction is the relationship between the current level of property prices and the cost of new construction. We would expect the supply of properties to:
A. increase if current property values are greater than the cost of construction
B. decrease if current property values are greater than the cost of construction
C. increase if current property values equal the cost of construction
D. decrease if current property values equal the cost of construction
Q:
Considered a fundamental pricing metric in commercial real estate markets, the ratio of a propertys annual net income to its market value is more commonly referred to as a(n):
A. Appreciation rate
B. Capitalization rate
C. Discount rate
D. Internal rate of return
Q:
Investors in real estate can choose to hold properties directly in the private market or indirectly through publicly traded real estate securities. The market for buying selling, and leasing real estate can be characterized by all of the following EXCEPT:
A. localized markets
B. highly segmented markets
C. privately negotiated contracts
D. low transaction costs
Q:
By the fourth quarter of 2015, U.S. households had accumulated $12.5 trillion in housing equity, which represents about 14 percent of their net worth. What proportion of U.S. households own their home?
A. one-third
B. one-half
C. two-thirds
D. three-fourths
Q:
Each property has unique features, whether it is its age, the building design of its structures, or its location. As such, real estate markets consist of assets that are considered:
A. homogeneous
B. heterogeneous
C. substitutes
D. complements
Q:
Competition for the currently available supply of locations and space coupled with the existing supply of leasable space, determines:
A. the current level of rental rates for each submarket and property
B. the riskiness of the expected cash flows of an income-producing property
C. the timing of the expected cash flows of an income-producing property
D. the cost of financing the purchase of a property
Q:
An example of a real estate asset that trades in the public debt market is:
A. real property
B. real estate operating companies
C. equity REITs
D. commercial mortgage backed securities (CMBS)
Q:
If we desire to classify land by its use, land that does not include any improvements to the land would be categorized as:
A. Raw land
B. Building site
C. Developed land
D. Property infrastructure
Q:
Externalities can play an important role in determining a propertys price, either by adding value through positive externalities or by diminishing value through negative externalities. Which of the following is most likely to be considered a negative externality?
A. Nearby parks and recreation facilities
B. Quality neighborhood schools
C. Public assistance facilities such as homeless shelters.
D. Well-kept landscapes.
Q:
A law requiring any contract conveying a real property interest to be in writing in order to be enforceable is a modern application of the:
A. Statute of Frauds
B. doctrine of constructive notice
C. habendum clause
D. actual notice
Q:
Once a document conveying an interest in real property is placed in the public records it is binding on the public, whether or not they make an effort to learn of it. Based on the common law tradition, this policy is known as the:
A. Statute of Frauds
B. doctrine of constructive notice
C. habendum clause
D. actual notice
Q:
While the vast majority of conveyances of real property are private grants through a deed, there are multiple ways in which voluntary conveyance can occur without a deed. Which of the following types of easements can occur if a landowner gives an adjacent landowner permission to depend on her land? (E.g. A landowner may give a neighbor permission to rely on sewer access or drainage across his or her land.)
A. Easement by prior use
B. Easement of necessity
C. Easement by estoppel
D. Dedication
Q:
The type of deed offered by the grantor is communicated through a phrase such as does herby grant, bargain, sell and convey unto . . . This clause is referred to as the:
A. recital of consideration
B. words of conveyance
C. covenant
D. habendum clause
Q:
A deed is a special form of written contract used to convey a permanent interest in real property. Unlike most contracts, a deed requires:
A. both parties to be legally competent and of legal majority age.
B. only the grantee to be legally competent and of legal majority age.
C. only the grantor to be legally competent and of legal majority age.
D. both parties to make promises to perform.
Q:
Which of the following leasehold estates best describes the situation in which a tenant who previously occupied a property under a legitimate leasehold interest refuses to vacate?
A. Tenancy for years
B. Tenancy at will
C. Periodic tenancy
D. Tenancy at sufferance
Q:
Since an easement is a non-possessory interest, it is important to understand the right of disposition that is associated with it. In which of the following types of easements is the right of disposition claimed as part of the easement?
A. Implied easement
B. Easement in gross
C. Negative easement appurtenant
D. Positive easement appurtenant
Q:
When multiple individuals have use of a property, but their interests are not simultaneous, this type of co-ownership is referred to as a:
A. Cooperative
B. Tenancy by the entirety
C. Condominium
D. Timeshare
Q:
In a mortgage agreement, the borrower conveys to the lender a security interest in the mortgage property. The lender, i.e. the individual who receives the mortgage claim, is known as the:
A. broker
B. mortgagor
C. agent
D. mortgagee
Q:
Most Adjustable Rate Mortgage (ARM) loans have been marketed with a temporarily reduced interest rate commonly referred to as a:
A. rate cap
B. teaser rate
C. payment cap
D. prepayment rate
Q:
A significant number of mortgage loans use adjustable interest rates, in which the interest rate of the loan is tied to an index rate that fluctuates over time. For income-producing property, the most common index rate is the:
A. one-year U.S. Treasury constant maturity rate
B. prime rate
C. London Interbank Offered Rate (LIBOR)
D. cost-of-funds index
Q:
Analysis of a subject propertys pro forma reveals that its fifth year net operating income (NOI) is projected to be $100,282 (you can assume that this cash flow occurs at the end of the year). If you estimate the projected rental growth rate for the property to be 3% per year and the going-out capitalization rate in year five to be 10%, determine the net sale proceeds the current owner of the property would receive if he were to sell the property at the end of year five and incur selling expenses that amounted to $58,300.
A. $944,520.00
B. $974,610.00
C. $1,002,820.00
D. $1,032,910.00
Q:
Suppose that examination of a pro forma reveals that the fifth year net operating income (NOI) for an income producing property that you are analyzing is $138,446 (you can assume that this cash flow occurs at the end of the year). If you estimate the projected rental growth rate for the property to be 5% per year, determine the projected sale price of the property at the end of year five if the going-out capitalization rate is 9%.
A. $988,900.00
B. $1,465,037.00
C. $1,538,289.00
D. $1,615,203.00
Q:
Suppose that an income producing property is expected to yield cash flows for the owner of $10,000 in each of the next five years, with cash flows being received at the end of each
period. If the opportunity cost of investment is 12% annually and the property can be sold for $100,000 at the end of the fifth year, determine the value of the property today.
A. $36, 047.76
B. $56,742.69
C. $83,333.33
D. $92,790.45