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3.4 - Student Loans & Mortgages

Total questions: 14

Worksheet time: 7mins

Name
Class
Date
1.

Which of the following will likely affect the total amount of interest you will end up paying on a home loan?

a)

How many other homes in your neighborhood are also for sale

b)

The median cost of homes in your neighborhood

c)

Your credit score

d)

The type of car you drive

2.

What is NOT a way to decrease your mortgage?

a)

Pay extra with monthly payments

b)

Increase your down payment

c)

Buy a less expensive home

d)

Decrease the length of your mortgage

3.

As you pay more of your mortgage as time goes on, you will pay less of the principal and more interest.

a)

TRUE

b)

FALSE

4.

Which is a advantage of using a ARMs?

a)

Good if you plan to stay living where you are

b)

Lower rate means less money to pay bills

c)

Rates can decrease over time

d)

Same monthly mortgage

5.

What is a better option if you plan on moving soon and want to build credit and avoid high costs?

a)

Renting

b)

Buying

6.

What are the two types of Home Equity Products (Choose 2 Answers)

a)

Home Equity Loan

b)

Home Equity Line of Credit

c)

Home Equity Funding

d)

Home Equity Checking Account

7.

Is you struggling to pay your mortgage you can do ALL except...

a)

Forbearance Plan

b)

Loan Mondification

c)

Repayment Plan

d)

Borrow from home equity

8.

The amont you owe to buy the home is called the .....

a)
principal
b)

mortgage

c)

Interest

d)

down payment

9.

The maximum amount you can borrow for college is...

a)

the COA

b)

unlimited so as long as you can pay it back

c)

the same amount you get in scholarships

d)

limited to $25,000 per year

10.

What are the two main types of student loans?

a)

Federal and state

b)


Public and private

c)


Federal and private

d)


State and private

11.

When do you have to start repaying federal loans?

a)

While you're still in school

b)

After you graduate

c)

After you start working

d)

After you turn 30

12.

What are the three most common federal loan types?

a)

Subsidized Direct Loans, Unsubsidized Direct Loans, and Direct PLUS loans.

b)

Subsidized Direct Loans, Unsubsidized Direct Loans, and Private Loans.

c)

Subsidized Loans, Unsubsidized Loans, and PLUS Loans.

d)

Direct Loans, Private Loans, and PLUS Loans.

13.

What should you keep in mind when borrowing federal loans?

a)


Borrow as much as you need and use it for your lifestyle expenses.

b)

Borrow as much as you can to cover all your expenses.

c)

Borrow wisely and never borrow more than what you need.

d)


Borrow only private loans instead of federal loans.

14.

What should you do if you have difficulty making payments?

a)

Ignore it and hope it goes away.

b)

Contact your loan servicer immediately to discuss options available to you.

c)

Wait until you are in default to contact your loan servicer.

d)


Refinance your loan with a different lender.