Finance & Loans – California Real Estate Salesperson Exam
Master the essential finance and loan concepts tested on the California Real Estate Salesperson Exam. This deck covers mortgage types, loan regulations, financing instruments, and key calculations including LTV, points, and interest. Ideal for exam prep and real-world application.
Or subscribe for $9.99/mo and study anything
Study Modes
Preview Questions
Question 1
What type of loan features a fixed interest rate and equal monthly payments throughout the life of the loan?
Answer
A fully amortized fixed-rate loan. Each payment covers both principal and interest, and the loan is completely paid off by the final payment.
Question 2
What is a balloon payment loan?
Answer
A loan that requires a large lump-sum payment of the remaining principal balance at the end of a relatively short loan term, even though payments may be calculated on a longer amortization schedule.
Question 3
What distinguishes a straight (term) loan from an amortized loan?
Answer
A straight loan requires interest-only payments during the loan term, with the entire principal due in one lump sum at maturity. An amortized loan gradually reduces principal with each payment.
Question 4
What is a reverse mortgage, and who typically uses it?
Answer
A reverse mortgage allows homeowners aged 62 or older to convert home equity into cash without monthly mortgage payments. The loan is repaid when the borrower sells, moves out, or dies.
Question 5
What is a package mortgage?
Answer
A package mortgage includes both real property and personal property (such as appliances and furniture) as collateral for a single loan.
Showing 5 of 28 cards. Unlock the full deck →
Related Study Decks
Agency & Ethics – California Real Estate Salesperson Exam
30 cards
CA Real Estate Law – California Salesperson Exam Prep
36 cards • Free
California Real Estate Contracts & Disclosures
33 cards
California Real Estate Exam: Math & Calculations
20 cards
California Real Estate Salesperson Exam — Complete Bundle
0 cards
Land Use & Zoning – California Real Estate Salesperson Exam
22 cards
Ready to pass your exam?
Join thousands of students using Prepdex to study smarter, not harder.
Buy This Deck — $12.99Or subscribe for $9.99/mo and study anything