Finance
A NJ mortgage broker is best described as a person who:
ALends their own money
BOriginates mortgage applications and connects borrowers with lenders but does not fund loans with their own capital✓ Correct
CServices existing mortgages
DAppraises properties for lenders
Explanation
A mortgage broker acts as an intermediary, originating loan applications and connecting borrowers with wholesale lenders. They earn a commission or origination fee but do not use their own capital to fund loans.
People Also Study
Related New Jersey Questions
- A New Jersey home sells for $520,000. The total commission is 5%, split 50/50 between listing and selling brokerages. The listing agent receives 60% of their brokerage's share. How much does the listing agent earn?Real Estate Math
- Which federal law requires lenders to provide a Loan Estimate to a mortgage applicant within three business days of application?Finance
- Under the Home Mortgage Disclosure Act (HMDA), NJ lenders covered by HMDA must report loan data to identify:Finance
- A NJ buyer pays $12,000 in mortgage points and $3,500 in other loan origination fees on a $600,000 loan. What is the total loan cost as a percentage of the loan amount?Real Estate Math
- A NJ seller receives a full-price offer of $485,000. After paying 5% commission, $2,000 attorney fee, $1,500 transfer tax, and paying off their $280,000 mortgage, what are the net proceeds?Real Estate Math
- Under RESPA, the Loan Estimate must be provided to a mortgage applicant within:Finance
- A 'conventional' mortgage loan is one that is:Finance
Key Terms to Know
Loan-to-Value Ratio (LTV)
The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Math Concepts
Study This Topic
Practice More New Jersey Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Jersey Quiz →