Mortgages

The first step in the mortgage process is...

• check my credit score

• complete application

• collect documentation

• underwriting

Typically a mortgage payment is comprised of what 3 items (biggest $$$)?

• interest, principal, taxes

• principal, PMI, interest

• HOA fees, principal, interest

• HOA fees, PMI, principal

For most installment purchases, a ______________ is generally required. It is usually a certain percent of the purchase price.

• Down payment

• Monthly payment

• Start up payment

• Initial payment

The installment payment on the loan is termed____________.

• Down payment

• Mortgages

• Amortization

• Buyer's equity

The schedule prepared showing the installment payments for the period (called the term of the loan) is called___________.

• Amortization Table

• Payment Method Table

• Installment Payment Table

• Mortgages Table

What happens to the loan amount when you put down a larger down payment?

• Decreases
• Increases
• No change

What happens to the cost of a loan when the APR is higher?

• Loan cost increases
• Loan cost decreases
• No change

What is the consequence of having a poor credit score?

• None of these answers are correct
• May pay a higher APR
• May pay a lower APR
• Go to jail

I avoid paying a PMI if I make a down payment of __________________ or more.

• 0%
• 5%
• 10%
• 20%

You want to pay less in overall interest. Every loan APR is the same. Select the best mortgage for you.

• 10 year loan
• 15 year loan
• 20 year loan
• 30 year loan