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National PSI Exam Prep questions with correct answers
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National PSI Exam Prep questions with correct answers
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National PSI Exam Prep questions with correctanswers
A broker is completing a CMA to determine the potential listing price of
a seller's home. Which of the following is NOT part of the final CMA
given to the seller?
A) Highest and best use evaluation
B) Comparable sales analysis
C) Adjustments to past sales
D) Pictures of comparables Correct Answer-A
Houses in the local area have had an increase in sales price and a
decrease in days on the market. A broker who is attempting to determine
the current market value for a residential listing would get the BEST
estimate of value by using
A) a GRM as the primary consideration to determine value.
B) the cost approach with reproduction estimates.
C) comparables that are no more than six months old.
D) comparables that are no more than 12 months old. Correct Answer-C
Rental rates have increased by 2% in the last six months. Which
appraisal principle BEST explains this rate increase?
A) Principle of substitution
,B) Principle of supply and demand
C) Principle of contribution
D) Principle of highest and best use Correct Answer-B
The current monthly GRM in a neighborhood is 200, and the annual
income is $24,000. What is the estimated value of a property in this
neighborhood?
A) $200,000
B) $240,000
C) $400,000
D) $4,800,000 Correct Answer-C
The subject property has two baths and one fireplace. The property
across the street sold for $181,000 and has two baths and two fireplaces.
The property behind the subject sold for $175,000 and has two baths and
no fireplace. In the area, baths are worth $5,000 and fireplaces are worth
$3,000. What is the subject property worth?
A) $175,000
B) $177,000
C) $178,000
D) $180,000 Correct Answer-C
,According to federal government lending regulations, a buyer
purchasing a home must have an appraisal for all the following types of
financing EXCEPT
A) FHA.
B) VA.
C) loan sold to FNMA.
D) seller carry. Correct Answer-D
A buyer chooses a loan with an LTV ratio of 90%, which requires the
purchase of PMI, instead of a loan with an 80% LTV, which would not
require the insurance. The buyer MOST likely made this choice because
A) if the buyer defaults, PMI will protect the buyer by paying off the full
loan.
B) the buyer will make a larger down payment but have smaller monthly
payments, including PMI.
C) paying PMI will mean that all mortgage payments and homeowners
association fees are deferred in case of default.
D) the buyer wants a smaller down payment, even though the buyer will
have to pay PMI. Correct Answer-D
A buyer is getting a new mortgage with a 95% loan-to-value ratio. The
final loan amount the lender will lend the buyer is determined by the
A) lower of the sales price or appraised value.
, B) higher of the sales price or appraised value.
C) sales price only.
D) appraised value only. Correct Answer-A
The difference between using a partially amortized loan or an interest-
only term loan is that the partially amortized loan would result in
A) smaller payments and a smaller balloon payment.
B) larger payments and a smaller balloon payment.
C) smaller payments and a larger balloon payment.
D) larger payments and a larger balloon payment. Correct Answer-B
A borrower is using leverage on a new home loan at 90% loan to value.
The disadvantage of this type of leveraging is that
A) the borrower is at higher risk of defaulting on the loan.
B) it allows the borrower to pay less interest over the life of the loan.
C) a larger down payment is required.
D) there is rarely any requirement for PMI. Correct Answer-A
A property owner has a large amount of equity in his home but does not
want to sell it to gain access to his money. What type of loan could the
owner use to access the equity in his home without having to make
monthly loan payments?
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