Bus Math Ch6 Quiz #1 (Practice)

What term describes the process where each payment pays off part of the principal plus the interest due each month?

• Amortized

• Closing Costs

• Down Payment

• Equity

What are the fees and expenses paid to complete the transfer of ownership of a home known as?

• Mortgage Loan

• Points

• Closing Costs

• Principal

What is the term for the percentage of the total cost of the house paid at the time of purchase to the lender?

• Down Payment

• Fixed Rate Mortgage

• Variable Rate Mortgage

• Equity

Which term refers to the type of mortgage where the rate of interest is fixed for the life of the loan?

• Amortized

• Fixed Rate Mortgage

• Principal

• Variable Rate Mortgage

What term is used for the balance of the purchase price that is usually borrowed?

• Points

• Mortgage Loan

• Closing Costs

• Down Payment

What term describes prepaid interest charges?

• Points

• Amortized

• Equity

• Security Deposit

What term is used for a loan balance that does not guarantee the rate of interest and may be increased or decreased?

• Fixed Rate Mortgage

• Principal

• Variable Rate Mortgage

• Mortgage Loan

What term describes the loss in value of property due to aging and use?

• Depreciation

• Loss of Income

• Assessed Value

• Security Deposit

What term is used to describe the difference between what is owed on a home and its value?

• Equity

• Down Payment

• Closing Costs

• Points

What term refers to the value of a property used to calculate property taxes?

• Assessed Value

• Security Deposit

• Depreciation

• Loss of Income