Mortgage Basics: Chapter 2 quiz

The principal of a fixed mortgage is paid off over time under a process called what?

Principia.

PITI.

Amortization.

Amore.

Which of the following is NOT an advantage of taking out an adjustable-rate mortgage (ARM)?

ARMs allow borrowers to take advantage of falling rates without refinancing.

On certain ARMs, called negative amortization loans, borrowers can end up owing more money than they did at closing.

ARMs offer a cheap way, for borrowers who don't plan on living in one place for very long, to buy a house.

If you're self-employed and don't want to share a lot of information about your income, which type of lender is your best bet?

A mortgage broker.

A mortgage banker.

A home builder.