Question

The method based on the premise that transaction prices of similar properties in the neighborhood are good indicators of value is:

Question 11 options:

	1) the market approach
	2) the income approach
	3) the cost approach
	4) the prices approach

Question 12 (2 points)

A promissory note should be:

Question 12 options:

	1) sold without the mortgage transferred with it
	2) sold with the mortgage transferred with it
	3) not sold
	4) insured against default

Question 13 (2 points)

With mortgage insurance, partial coverage and co-insurance are used synonymously and provide the same degree of coverage.

Question 13 options:

	1) True
	2) False

Question 14 (2 points)

The FHA up-front mortgage insurance premium (MIP) is:

Question 14 options:

	1) refunded if the loan is subsequently assumed
	2) equal to five percent of the face amount of the loan
	3) can be financed under some conditions
	4) none of the above

Question 15 (2 points)

Borrower qualification considers all of the following except:

Question 15 options:

	1) type of income
	2) stability of income
	3) living expenses
	4) location of the borrower

Answer 1

Question 11

The method based on the premise that transaction prices of similar properties in the neighborhood are good indicators of value is:

1) the market approach.

In the market approach, the value of a property is derived from the transaction of a similar property in the neighborhood.

Option 2 is incorrect because the in the income approach the property is valued based on the futue estimated income generated by the property.

Option 3 is incorrect because in the cost approach the property is valued based on what it takes to build to property.

Option 4 is incorrect because it is similar to the cost approach in which the property is valued based on what a typical buyer would pay for the property.

Please do not downvote for not answering the remaining questions. As per HOMEWORKLIB RULES, when there are multiple questions, we are encouraged to provide a solution to at least the first question.

Can you please upvote? Thank You :-)