QUESTION 12 To encourage borrowers to accept adjustable rate mortgages (ARMs) rather than level-payment mortgages, mortgage originators generally offer an initial short-term introductory rate that is less than the prevailing market mortgage rate. This rate is referred to as an): O teaser rate O margin rate O Index rate discount rate QUESTION 3 The caprate is an important metric that investors use to analyze the state of commercial real estate markets, Wher interpreting cap rate movements, an increase in cap rates over time would indicate that: The discount rate used in TVM (time value of money) calculations has increased The discount rate used in TVM (time value of money calculations has decreased O Property values have increased Property values have decreased QUESTION 4 4p Suppose that you are attempting to value an income producing property using the direct capitalization approach. Using data from comparable properties, you have determined the overall capitalization rate to be 75% If the projected first year net operating income (Non for the subject property is $195,500, what is the indicated value of the subject using direct capitalization? 5144985 515055556 $180666667 @ 39033333,33 QUESTIONS When fully amortizing loans call for equal periodic payments over the life of the loan they are known as: adjustable rate mortgages early payment mortgages O interest-only mortgages O level-payment mortgages QUESTION 6 4 While there is no specific number of comparables that is required for every appraisal assignment, how many comparable sales are considered adequate as long as the properties are very similar to the subject property o One Three Five Ten QUESTION 7 The NPV valuation type allows for uneven cashflows throughout the investment lifecycle. O True False QUESTION 8 This table shows outstanding loan payments throughout the cycle of a loan: Amortization Schedule O Payment Schedule General Ledger Statement of Cash Flows QUESTION 9 While there are several conventional approaches used to estimate the market value of real estate, which of the following is typically considered the most reliable approach? Income approach (NPV) O Sales comparison approach O Cost approach O Investment approach QUESTION 10 Which of the following measures is considered the fundamental determinate of market value for income producing properties? Net operating income Potential gross income Operating expenses Capital expenditures