New Hampshire Finance
Practice Questions & Answers (2026)
Finance questions on the New Hampshire real estate exam cover mortgage types, loan-to-value ratios, qualifying ratios, and federal lending laws. The New Hampshire Real Estate Commission 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. New Hampshire 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 NH 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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New Hampshire Finance — Practice Questions & Answers
135 questions on Finance from the New Hampshire real estate question bank. First 10 are free — sign up to unlock all 135.
Q1. New Hampshire does not have a general state sales tax or state income tax. How does this affect real estate transactions?
Explanation
Despite lacking a broad-based income or sales tax, New Hampshire does impose a real estate transfer tax (RETT), which is collected at closing and typically split between buyer and seller.
Q2. A mortgage with a 30-year term and fixed rate compared to a 15-year fixed rate will have:
Explanation
A 30-year mortgage has lower monthly payments because the principal is spread over more payments, but the borrower pays significantly more total interest compared to a 15-year loan.
Q3. An FHA loan requires an upfront mortgage insurance premium (UFMIP) of 1.75% of the base loan amount. For a $250,000 loan, what is the UFMIP?
Explanation
UFMIP = $250,000 × 0.0175 = $4,375. This amount is typically financed into the loan.
Q4. Points paid to a lender at closing to reduce the mortgage interest rate are called:
Explanation
Discount points are fees paid upfront to permanently reduce the loan's interest rate. Each point equals 1% of the loan amount and typically reduces the rate by 0.125%–0.25%.
Q5. Under the Equal Credit Opportunity Act (ECOA), a lender may NOT deny a mortgage based on:
Explanation
ECOA prohibits credit discrimination based on race, color, religion, national origin, sex, marital status, age, or receipt of public assistance. Lenders may consider creditworthiness factors but not these protected characteristics.
Q6. What is the debt-to-income (DTI) ratio a lender uses to qualify a borrower?
Explanation
The debt-to-income ratio compares monthly debt obligations (including the proposed mortgage payment) to monthly gross income. Most conventional loans require a DTI of 43% or less.
Q7. A conventional loan typically requires private mortgage insurance (PMI) when the down payment is less than:
Explanation
Lenders typically require PMI when a conventional loan's down payment is less than 20%, because the lender's risk is higher with less equity in the property.
Q8. What is the maximum loan amount for a standard conforming conventional mortgage in most U.S. markets for a single-family home in 2024?
Explanation
The FHFA sets conforming loan limits annually. For 2024, the baseline conforming loan limit for a single-family home is $766,550 in most areas, but $806,500 is the limit effective for 2025.
Q9. A VA loan benefit available to eligible veterans and service members includes:
Explanation
VA loans offer eligible veterans and active-duty service members the ability to purchase a home with no down payment and without private mortgage insurance (PMI), making homeownership more accessible.
Q10. The Truth in Lending Act (TILA) requires lenders to disclose the:
Explanation
TILA requires lenders to disclose the APR, finance charge, total amount financed, and total of all payments so borrowers can compare loan costs on an apples-to-apples basis.
Q11. An adjustable-rate mortgage (ARM) has a 2/1 buydown structure. This means:
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