Mortgage Terms

What can you infer from the fact that banks require a down payment on a mortgage?

• They want to increase the amount of money they loan

• They want to make sure the borrower will not walk away from the loan

• They want to increase they amount of interest on the loan

• They want to get their hands on as much cash as possible

Tags

CCSS.RI.11-12.2

CCSS.RI.7.1

CCSS.RL.11-12.1

CCSS.RL.8.1

CCSS.RL.9-10.1

What is one of the advantages to making a larger down payment?

• You will need a smaller loan

• You will need a bigger loan

• You will need a higher interest rate

• You will need a lower intererest rate

Tags

CCSS.7.RP.A.3

What is the most likely reason for borrowers to default on a mortgage?

• They can't afford the down payment

• They find another house they like better

• They've built up enough equity to sell the house

• They can no longer afford the monthly payments

Which of the following will a bank consider in its decision to approve you for a mortgage?

• Your ethnic background

• Your religion

• Your salary

• Your hobbies

If you are unable to repay your mortgage, what is the most likely result?

• The bank might sell your home to recover its investment

• You might have to go to prison

• The bank might force you to take out an additional loan

• The bank might take all they money and goods you own

Tags

CCSS.RI.9-10.4

CCSS.RI.9-10.4

CCSS.RI.11-12.4

CCSS.RI.7.4

CCSS.RI.8.4

A mortgage term is:

• The interest rate on a mortgage loan.
• The length of time a borrower agrees to repay the mortgage loan at a specific interest rate.

• The type of property that can be purchased with a mortgage loan.
• The amount of money a borrower pays upfront for a mortgage loan.

What is a mortgage?

• A savings account for home repairs

• A government grant for first-time homebuyers

• A type of insurance policy

• A loan to buy or refinance a home

What is included in a monthly mortgage payment?

• Principal, interest, and other fees

• Down payment

• Utility bills

• Renovation costs

Tags

CCSS.7.RP.A.3

What is a fixed-rate mortgage?

• A mortgage with an interest rate that changes based on the market

• A mortgage with an interest rate that stays the same through the term

• A mortgage with a rate that increases after the first year

• A mortgage with a rate that decreases after five years

1. In a _____ mortgage, the interest rate remains constant for the entire loan term.

• Open Mortgage

• Fixed Rate

• Variable Rate

• Closed Mortgage

Tags

CCSS.RI.9-10.4

CCSS.RI.9-10.4

CCSS.RI.11-12.4

CCSS.RI.7.4

CCSS.RI.8.4