New York Finance
Practice Questions & Answers (2026)
Finance questions on the New York real estate exam cover mortgage types, loan-to-value ratios, qualifying ratios, and federal lending laws. The New York Department of State (DOS) 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 York 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 NY 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 York Finance — Practice Questions & Answers
164 questions on Finance from the New York real estate question bank. First 10 are free — sign up to unlock all 164.
Q1. The Truth in Lending Act (TILA) requires lenders to disclose:
Explanation
TILA requires lenders to disclose the Annual Percentage Rate (APR) and other key loan terms so borrowers can make informed comparisons between loan products.
Q2. Which government-sponsored enterprise (GSE) purchases conventional conforming mortgages on the secondary market?
Explanation
Fannie Mae (Federal National Mortgage Association) and Freddie Mac are government-sponsored enterprises that purchase conventional conforming mortgages on the secondary market, providing liquidity to lenders.
Q3. A buyer takes out a $300,000 mortgage at 6% annual interest. What is the first month's interest charge?
Explanation
Monthly interest = $300,000 x (6% / 12) = $300,000 x 0.005 = $1,500 for the first month.
Q4. FHA loans require a minimum down payment of:
Explanation
FHA loans require a minimum down payment of 3.5% for borrowers with a credit score of 580 or higher. This lower down payment requirement makes FHA loans attractive to first-time buyers.
Q5. A point paid on a mortgage loan is equal to:
Explanation
One mortgage point equals 1% of the loan amount. Points may be paid to reduce the interest rate (discount points) or as origination fees.
Q6. A 'due-on-sale' clause in a mortgage requires:
Explanation
A due-on-sale (alienation) clause requires the full mortgage balance to become due and payable when the property is sold or transferred, preventing assumption of the loan without lender approval.
Q7. Which loan type is guaranteed by the U.S. Department of Veterans Affairs and requires no down payment for eligible veterans?
Explanation
VA loans are guaranteed by the U.S. Department of Veterans Affairs and allow eligible veterans, active-duty service members, and surviving spouses to purchase a home with no down payment.
Q8. Private Mortgage Insurance (PMI) is typically required when a conventional loan has a loan-to-value ratio above:
Explanation
Lenders typically require PMI when the loan-to-value (LTV) ratio exceeds 80%, meaning the buyer puts less than 20% down. PMI protects the lender in case of default.
Q9. An adjustable-rate mortgage (ARM) typically offers:
Explanation
An ARM offers an initial fixed interest rate for a specified period, after which the rate adjusts periodically (e.g., annually) based on a specified index plus a margin.
Q10. RESPA (Real Estate Settlement Procedures Act) prohibits:
Explanation
RESPA prohibits kickbacks, referral fees, and unearned fee splits between settlement service providers such as lenders, title companies, and real estate brokers.
Q11. The Loan Estimate must be provided to a mortgage applicant within how many business days of application?
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