Valuation and Financing Practice Question
Question
A broker is supervising a transaction file involving fixed-rate loans. Which statement best describes fixed-rate loans? (Item 70)
Answer choices
- A. It applies only to commercial property and never to residential transactions.
- B. Identify stable principal-and-interest payments over the loan term.
- C. It is controlled only by local custom rather than by law, contract, or professional duty.
- D. It is valid only when the buyer pays cash and no lender is involved.
Correct Answer
B. Identify stable principal-and-interest payments over the loan term.
Explanation
The correct answer is B because fixed-rate loans requires candidates to identify stable principal-and-interest payments over the loan term. The other options overstate the effect of custom, oral agreement, escrow, or independent salesperson action and do not reflect safe California exam practice.
Question details
- Difficulty: hard
- Domain: Valuation and Financing
- Objective: fixed-rate loans