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Finance & Mortgages – Texas Real Estate Salesperson Exam

Master the finance and mortgage concepts tested on the Texas Real Estate Salesperson Exam with these 28 targeted flashcards. Topics include loan types, mortgage instruments, financing regulations, and key calculations essential for passing the state exam. Ideal for salesperson candidates seeking a focused review of real estate finance fundamentals.

28 cards Intermediate Mortgage Instruments & Documents Loan Types & Characteristics Financing Regulations & Consumer Protections Loan Qualification & Underwriting Secondary Mortgage Market

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Preview Questions

Question 1

What is the primary difference between a mortgage and a deed of trust in Texas?

Answer

A mortgage involves two parties (borrower and lender), while a deed of trust involves three parties: the borrower (trustor), the lender (beneficiary), and a neutral third party (trustee) who holds legal title.

Question 2

What document in a real estate loan transaction represents the borrower's personal promise to repay the debt?

Answer

The promissory note (also called a mortgage note) is the borrower's written, legally binding promise to repay the loan under specified terms.

Question 3

What is a 'deficiency judgment' in the context of mortgage foreclosure?

Answer

A deficiency judgment is a court order requiring a borrower to pay the difference between the foreclosure sale price and the remaining balance owed on the loan when the sale proceeds are insufficient.

Question 4

What is the legal term for the clause in a mortgage or deed of trust that allows the lender to demand full repayment if the property is sold or transferred?

Answer

The due-on-sale clause (also called an alienation clause) requires the entire loan balance to be paid upon sale or transfer of the property.

Question 5

What does an 'acceleration clause' in a mortgage allow the lender to do?

Answer

An acceleration clause allows the lender to declare the entire remaining loan balance immediately due and payable if the borrower defaults on any loan term.

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