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Understanding Mortgages

Authored by Joshua Ehrenberg

Financial Education

12th Grade

Used 2+ times

Understanding Mortgages
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20 questions

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1.

MULTIPLE CHOICE QUESTION

5 mins • 1 pt

What does the acronym P-I-T-I stand for in the context of mortgages?

Principal, Interest, Tariffs, Insurance

Principal, Interest, Taxes, Income

Principal, Investment, Taxes, Insurance

Principal, Interest, Taxes, Insurance

2.

MULTIPLE CHOICE QUESTION

5 mins • 1 pt

What is typically the largest and longest loan most people take out in their lives?

Personal loan

Car loan

Student loan

Home mortgage

3.

MULTIPLE CHOICE QUESTION

5 mins • 1 pt

What is the primary purpose of private mortgage insurance (PMI)?

To cover property taxes

To reduce the interest rate on the mortgage

To protect the lender in case of borrower default

To protect the homeowner from default

4.

MULTIPLE CHOICE QUESTION

5 mins • 1 pt

Which type of mortgage has an interest rate that never changes?

Adjustable Rate Mortgage

Fixed Rate Mortgage

VA Loan

FHA Loan

5.

MULTIPLE CHOICE QUESTION

5 mins • 1 pt

What is the minimum down payment required for an FHA loan?

0%

3.5%

20%

10%

6.

MULTIPLE CHOICE QUESTION

5 mins • 1 pt

Which type of loan is specifically for veterans and requires no down payment?

FHA Loan

VA Loan

USDA Loan

Conventional Loan

7.

MULTIPLE CHOICE QUESTION

5 mins • 1 pt

What does the '5' in a 5-1 ARM mortgage represent?

The interest rate is fixed for 5 years

The interest rate changes every 5 months

The loan term is 5 years

The interest rate changes every 5 years

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