California Real Estate Practice Exam

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Master the California Real Estate Exam with our comprehensive practice quiz. Get expert tips, detailed content review, and insider strategies to pass on your first try.

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A mortgage where the borrower has to turn over a portion of the profit from selling the house to the lender is called?

A fixed-rate mortgage
An adjustable-rate mortgage
A shared appreciation mortgage
A reverse mortgage

The correct answer is: A shared appreciation mortgage

A shared appreciation mortgage is the correct answer because it involves the borrower sharing a portion of the profits from selling the house with the lender. This is different from a fixed-rate mortgage, where the borrower pays a fixed interest rate over the life of the loan. An adjustable-rate mortgage also involves interest rate changes, but does not involve sharing profits with the lender. A reverse mortgage is a type of loan where homeowners receive payments based on the equity of their home and do not have to make monthly payments, but they do not have to share any profits from selling the house with the lender.