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.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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If a buyer secures a mortgage significantly below the prevailing rates, what does this allow them to do?

Pay less interest over the life of the loan
Purchase a more expensive property
Negotiate a better sale price
Avoid property taxes

The correct answer is: Purchase a more expensive property

Securing a mortgage significantly below the prevailing rates allows a buyer to purchase a more expensive property. This is because a lower mortgage rate means lower monthly payments, allowing the buyer to afford a higher-priced property. Option A is incorrect because although the buyer would pay less interest overall, this does not directly correlate to being able to purchase a more expensive property. Option C is incorrect as the sale price is negotiated before the mortgage is secured. Option D is also incorrect as property taxes are determined by the assessed value of the property, not the mortgage rate.