7-3 Mortgage Application Process

How is Property Taxes determined?

• moveable items owned

• land owned

• how often property is used

• how much you like it

True or False:

Debt-to-Income Ratio compares how much you owe yearly to how much you earn which determine your borrowing risk.

• True

• false

Adjustable rate...

• Changes overtime

• Stays the same

Private Mortgage Insurance (PMI) is an extra expense that borrowers make a down payment of less than ______ of purchase price.

• 15%

• 45%

• 20%

• 60%

When it comes to front-end ratio, the categories of paying for housing is Mortgage, Insurance and Tax

• True

• False

Who is required to pay the interest on the loan for a certain period?

• Borrower
• Real estate agent
• Lender
• Government

Is it True or False? Multiple intrest rates for the entire term of a loan is known as a Fixed- Rate Mortgage.

• True
• False