Mortgage 102

What is the most common reason people get a mortgage?

• Build a house

• Buy a house

• Renovate a house

• Sell a house

Answer explanation

Buying a house is the most common motive pushing people to get a mortgage 😊

What is the main cost differentiator when you build a house?

• Whether or not you also buy the land on which the building stands

• Whether or not you use eco-friendly materials

• Whether or not you use own a construction company

• Whether or not your friend is an architect and can give you a discount

A buy out operation ALWAYS include

• A purchase and a refinance

• A purchase and a renovation

• A purchase

• A purchase and a build

Answer explanation

When buying out a share of ownership of a real estate property, you will always perform a purchase of that part of the property.

You won't necessarily refinance a mortgage!

In which of the following situations the house DOES NOT exist yet?

• Refinance

• Build

• Buy

• Buy Out

In which of the following occasions is a mortgage more likely to be refinanced?

[MULTIPLE ANSWERS]

• A couple divorces

• Interest rates have decreases significantly in the last 5 years

• Consolidating your loans would allow you to pay a lower interest rate

• Your don't like your bank