Clay MADISEN :: Mortgage Quiz



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Mortgage Quiz

Test your knowledge about mortgage.

Question: What are the components of a typical mortgage payment ?

Property taxes, Investment, Theft insurance.

Principal, Interest, Property Taxes, Property insurance.

Principal, Investment, Property Taxes, Property insurance.

Private mortgage insurance, Interest, Theft insurance.

Question: Which of the following is NOT true about choosing your lender ?

Mortgage bankers usually present you with only one program.

Mortgage brokers shop the rates -- working with more than one lender.

Banks and thrifts generally offer fewer choices of loan products.

Question: Which of the criteria listed below has no bearing on whether a person is qualified to get a mortgage on a property ?

Employment and income.

Debt-to-income ratio.

Cash reserves and assets.

Education level.

Question: What percentage of your pretax income, including your mortgage payments, should your total debts not exceed ?

28%.

36%.

50%.

Question: A "pre-qualified" buyer has completed a loan application and had their credit report checked and is pre-approved for a home loan.

True.

False.

Question: The main difference between a property's appraised value and assessed value is :

Nothing, appraised value and assessed value mean the same thing.

The appraised value will determine how much a lender is willing to lend you, while the assessed value determines your property taxes.

Appraised value is the value returned by the county property appraiser\'s office, while the assessed value is the fair market value determined by your property appraiser.

Question: Which of the following is a government insured loan ?

FHA.

VA.

Conventional.

Both FHA and VA.

Question: The document required for a veteran to obtain a VA loan is called :

A DD-214.

An Affidavit of Non-Foreign Status.

A Certificate of Eligibility.

Question: Which of the following is not tax deductible ?

The interest you pay on your mortgage.

Your real estate taxes

The cost of home improvements.

Question: What happens to your home equity as you pay off more of your mortgage ?

It increases.

It decreases.

It stays the same.