Sample One: Mortgage Concept Question

Lender A has 15 year amortization period while Lender B has 20 year amortization period, assuming all other factors are all the same, which one below is correct?

A. Each monthly payment A will be bigger than payment B
B. The Annual percentage rate are the same for A and B
C. Each monthly payment A will pay more principal than payment B
D. Each monthly payment A will be smaller than payment B

(1) A and B are true
(2) A and C are true (Right Answer)
(3) B and D are true
(4) Only B is true

Quick Pass Master Explanation:

B is false, because the shorter the amortization, the bigger the Annual Percentage Rate.

D is false, because each monthly payment A will be bigger than payment B. When amortization is shortened, borrower has less time to pay off the principal of the loan, and this means borrower has to pay more each month in order to pay off the same amount of loan.

Sample Two: Law question

What kind of unity does tenancy in common have?

(1) Unity of time
(2) Unity of title
(3) Unity of interest
(4) Unity of possession (Right Answer)

Quick Pass Master Explanation:

Tenancy in common has only one unity: unity of possession, while Joint Tenancy has all four unities: time, title, interest, and possession.