Georgia Finance
Practice Questions & Answers (2026)
Finance questions on the Georgia real estate exam cover mortgage types, loan-to-value ratios, qualifying ratios, and federal lending laws. The Georgia Real Estate Commission (GREC) tests both the mechanics of real estate financing and the regulatory framework — particularly RESPA, TILA (Truth in Lending), and the TRID rules that govern loan disclosures. Georgia candidates often lose points on financing questions because they understand the concept but miss the specific numerical thresholds or disclosure timing requirements that appear on the GA exam. Pay particular attention to ARM vs. fixed-rate mortgage distinctions, the calculation of LTV ratios, and what information must appear in specific disclosure documents.
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Georgia Finance — Practice Questions & Answers
191 questions on Finance from the Georgia real estate question bank. First 10 are free — sign up to unlock all 191.
Q1. A Georgia USDA Rural Development loan is designed for:
Explanation
USDA Rural Development (RD) loans are available to eligible low-to-moderate income borrowers purchasing homes in designated rural and eligible suburban areas. They offer 100% financing (no down payment) to qualified applicants.
Q2. A Georgia property appraised at $275,000 has an existing first mortgage of $180,000. The owner wants to take out a home equity loan for $50,000. What is the combined loan-to-value (CLTV) ratio?
Explanation
CLTV = (First Mortgage + Home Equity Loan) ÷ Appraised Value = ($180,000 + $50,000) ÷ $275,000 = $230,000 ÷ $275,000 = 83.6%. The closest answer is 81.82%.
Q3. What does 'assumption of mortgage' mean in a Georgia real estate transaction?
Explanation
When a buyer assumes a mortgage, they take over the seller's existing loan and become personally liable for it. The original terms (rate, balance, maturity) remain, which can be advantageous if the existing rate is below current market rates.
Q4. Georgia law requires a real estate closing to be conducted by:
Explanation
Georgia is an attorney closing state. Real estate closings in Georgia must be conducted by a licensed Georgia attorney, who supervises the closing, reviews documents, and disburses funds.
Q5. A Georgia buyer takes out a $240,000 mortgage at a 7% fixed rate, fully amortized over 30 years. The monthly payment factor at 7% for 30 years is $6.65 per $1,000. What is the approximate monthly P&I payment?
Explanation
Monthly P&I = (Loan Amount ÷ $1,000) × Payment Factor = ($240,000 ÷ $1,000) × $6.65 = 240 × $6.65 = $1,596.
Q6. Which federal law requires lenders to provide a Loan Estimate to borrowers within three business days of receiving a loan application?
Explanation
TRID (the TILA-RESPA Integrated Disclosure rule) requires lenders to provide a Loan Estimate within three business days of receiving a completed loan application.
Q7. A Georgia buyer makes a 10% down payment on a $300,000 home. What is the loan amount?
Explanation
10% of $300,000 = $30,000 down payment. Loan amount = $300,000 − $30,000 = $270,000.
Q8. Which type of mortgage loan is guaranteed by the U.S. Department of Veterans Affairs?
Explanation
VA loans are guaranteed by the U.S. Department of Veterans Affairs and are available to eligible veterans, active-duty service members, and surviving spouses.
Q9. The Truth in Lending Act (TILA) requires lenders to disclose the:
Explanation
TILA requires lenders to disclose the Annual Percentage Rate (APR), which reflects the true cost of borrowing including interest and certain fees, so borrowers can compare loan offers.
Q10. An adjustable-rate mortgage (ARM) typically starts with a lower interest rate that can change based on a:
Explanation
ARM interest rates adjust based on a published market index (such as SOFR or the 1-year Treasury) plus a lender's margin, which together determine the new interest rate at each adjustment period.
Q11. Under RESPA, which payment is prohibited?
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