FREE Arizona Real Estate License Financing and Valuation Principles Questions and Answers Flashcards
6 cards from real Arizona Real Estate License practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 FREE Arizona Real Estate License Financing and Valuation Principles Questions and Answers flashcards as text
What does the term 'equity' refer to in residential real estate financing?
Answer: The difference between the property's market value and the outstanding mortgage balance
Equity is the difference between the current market value of a property and the remaining balance owed on any mortgages or liens against it.
In Arizona, which type of loan is insured by the Federal Housing Administration and typically requires a lower down payment?
Answer: FHA loan
FHA loans are insured by the Federal Housing Administration and are designed to help borrowers who may not qualify for conventional financing by requiring lower down payments.
What is the purpose of a comparative market analysis (CMA) in real estate valuation?
Answer: To estimate a property's market value by analyzing recent sales of comparable properties
A CMA estimates a property's likely selling price by comparing it to similar properties that have recently sold, are currently listed, or were listed but did not sell in the same area.
Which type of depreciation is caused by factors external to the property, such as a nearby landfill or highway construction?
Answer: Economic obsolescence
Economic (external) obsolescence is a loss in value caused by factors outside the property's boundaries that the owner cannot control or cure.
What does PITI stand for in the context of a monthly mortgage payment?
Answer: Principal, Interest, Taxes, and Insurance
PITI stands for Principal, Interest, Taxes, and Insurance, representing the four components that typically make up a borrower's total monthly housing payment.
In Arizona, what triggers the power-of-sale clause in a deed of trust during a non-judicial foreclosure?
Answer: The borrower defaults on the loan terms
The power-of-sale clause is activated when the borrower defaults on the loan, allowing the trustee to sell the property without court proceedings after proper notice.