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Mortgages

Total questions: 15

Worksheet time: 18mins

Name
Class
Date
1.

You do not have to pay PMI when you have at least this much equity in your home

a)

10

b)

15

c)

20

d)

30

2.

A Jumbo loan involves

a)

loans that are 100% of the value of home

b)

loans that are longer than 30 years

c)

loans that have extremely high interest rates

d)

loans on luxury homes

3.

This is the most common type of loan and usually has a fixed rate

a)

conventional

b)

FHA loan

c)

VA loan

d)

investment

4.

This is required for you to put an offer on a home with a real estate company

a)

inspection

b)

preapproval letter

c)

PMI

d)

escrow

5.

This type of mortgage usually requires 0% down and has low interest rates

a)

conventional

b)

investment

c)

VA loan

d)

FHA loan

6.

Mark the following items that everyone is required to pay on a mortgage loan

a)

HOA

b)

PMI

c)

Taxes

d)

insurance

e)

principal payment

7.

Adding escrow to your mortgage payment will include what additional payments

a)

interest

b)

taxes

c)

insurance

d)

utilities

8.

If you bought a home for $100,000 and the home is worth $150,000 and paid $20,000 down payment at closing- how much equity do you have in the home

a)

$150,000

b)

$20,000

c)

$70,000

d)

$80,000

9.

The Truth in Lending Act guarantees that what information is provided in writing

a)

costs

b)

value of home

c)

estimate of repairs

d)

square footage

10.

Which scenario would be a good idea to refinance a loan

a)

interest rates are currently high

b)

interest rates are currently low

c)

you need extra money for repairs to home

d)

you want to lower the total amount of payment or interest paid

e)

You like the new bank that just opened in town

11.

Which of the following Debt to Income ratios would be able to get a loan approved

a)

55

b)

40

c)

10

d)

25

e)

30

12.

This is the process you go through when determining if your loan application is acceptable

a)

prewriting

b)

screening

c)

underwriting

d)

escrow

13.

which loan will you more than likely pay less interest on for the duration of a loan?

a)

Adjustable Rate

b)

3% fixed rate 15 year

c)

3% fixed rate 30 year

d)

Jumbo 15 year loan

14.

you typically are expected to pay how much down on an investment property loan?

a)

5%

b)

10%

c)

20%

d)

35%

15.

This is what you pay when you make an offer on a home

a)

down payment

b)

PMI

c)

escrow

d)

earnest money