Mortgage

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

• Loan cost increases
• Loan cost decreases
• No change

I avoid paying 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

Assuming you do not overborrow or overpay, have a stable job, and have no desire to move, buying your own home is usually a better choice than renting.

• Agree
• Disagree

A Jumbo loan involves

• loans that are 100% of the value of home

• loans that are longer than 30 years

• loans that have extremely high interest rates

• loans on luxury homes

This is the most common type of loan and usually has a fixed rate

• conventional

• FHA loan

• VA loan

• investment

This type of mortgage usually requires 0% down and has low interest rates

• conventional

• investment

• VA loan

• FHA loan

Mark the following items that everyone is required to pay on a mortgage loan

• HOA

• PMI

• Taxes

• insurance

• principal payment

Adding escrow to your mortgage payment will include what additional payments

• interest

• taxes

• insurance

• utilities

If you bought a home for $100,000 and the home is worth $150,000 and paid $20,000 down payment at closing- how much equity do you have in the home

• $150,000

• $20,000

• $70,000

• $80,000