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WorksheetsMortgage Life
Total questions: 16
Worksheet time: 8mins
The first step in the mortgage process is...
check my credit score
complete application
collect documentation
underwriting
A consumer reporting agency (CRA) compiles information on consumer habits including:
personal data
account history
public records
delinquent accounts
Typically a mortgage payment is comprised of what 3 items (biggest $$$)?
interest, principal, taxes
principal, PMI, interest
HOA fees, principal, interest
HOA fees, PMI, principal
Who do you need to help you figure out the right home for you?
Real estate agent
Financial advisor
Parents
Me, myself & I
What factors impact how much your mortgage payment is?
Interest rate
Mortgage length (15 yr, 30 yr)
Mortgage company
Down payment amount
Which item has the greatest impact on your FICO credit score?
payment history
new credit
types of credit
loan balances
What is the FICO score range between?
200 & 800
300 & 800
200 & 1000
300 & 900
Which is NOT a way to decrease your mortgage payment amount?
Shop for a lower interest rate
Remodel your home
Negotiate a lower purchase price
Increase your down payment amount
Specific property that secures the mortgage loan is called (a) .
Which one of the following is not a type of risk associated with loans and policy?
loan risk
liquidity risk
credit risk
market risk
What is the primary reason for banks to offer mortgages?
people cannot afford homes in cash
foreclose on homes that they can sell
to help their local economy
to generate interest income to reinvest
Why do banks engage in credit rationing?
to increase their profits
to minimize exposure to default risks
to avoid predatory lending
to find the right buyers
What is something you can do to build a strong credit score?
make payments on time
do not use credit
request your credit score weekly
use a co-signer
Modern _________ Theory states that banks should diversify their _________ in order to maximize profit while also managing risk.
(a)
An installment loan has a fixed number of payments.
True
False
An example of an open-ended loan is a student loan.
True
False
