Oper - What do you know about mortgages?

A mortgage is

• a financial contract

• a financial instrument

• an asset-backed operation

• a consumer loan

The Loan-to-Value (LTV) ratio

• is a risk metric used by lenders

• cannot be higher than 100%

• measures the creditworthiness of the borrower

• is affected by the fair value of the property

DTI stands for

• Downpayment-to-interest

• Debt-to-interest

• Debt-to-investment

• Debt-to-income

The living surplus is (1) _____ minus (2) _____ and (3) _____

• (1) income, (2) rent, (3) existing credits

• (1) interest, (2) capital, (3) monthly payment

• (1) income, (2) liabilities, (3) monthly payment

• (1) income, (2) rent, (3) monthly payment

Identify the WRONG loan type

• mensuality

• balloon

• balloon credit

• fixed term

The APRC is

• the legal word for interest rate

• a cost metric for loans

• an advanced technique for interest rate determination

• the name of a mortgage product

The amortisation table

• contains the full payment schedule of the mortgage

• needs to be signed by the borrower(s)

• can be both in years and months

• contains the financial plan

Which of the following is NOT a variable formula for an interest rate?

• 1-1-1-cap4

• 60-5-5-cap10

• 3-3-3

• 1-1-1-acc

The loan amount of a mortgage can include

• principal, taxes, notary fees

• taxes, notary fees, insurance

• principal, taxes, notary fees, insurance

• principal, taxes, insurance

Which insurance products are typically sold with a mortgage

• liability insurance, fire insurance

• liability insurance, health insurance

• fire insurance, disaster insurance

• liability insurance, life insurance