TABLE 5: Mortgage Application Process Vocab

Tax levied by local governments on moveable items such as boats, cars, and equipment within their jurisdiction

• Real estate tax

• Property tax

• Automotive tax

• Mobile tax

What is debt-to-income ratio?

• A larger then usual one time payment at the end of a loan term

• An extra expense that borrowers make a downpayment of less then 20% of the purchase price

• A comparison of how much you owe each month to how much you earn which helps to determine your borrowing risk

• A percentage showing how much your income goes to paying for housing ( mortgage , insurances , taxes, etc)

Everyone has homeowner's insurance

• True

• False

To foreclose a property is to take possession of it because the mortgagor failed to obtain homeowner's insurance for their mortgaged property

• True

• False

Private mortgage insurance (PMI) is an extra expense that borrowers make a down payment of less than _____ of the purchase price on

• 10%

• 20%

• 25%

• 30%

The only way to purchase a residence is by taking out a mortgage

• True

• False

The price that a property would sell on the open market for is the...

• Mortgage value

• Open mortgage market

• PMI

• Market value