Private mortgage insurance (PMI) is a permanent fixture of your mortgage payment if you have a(n) ____ loan.
a) subprime
b) FHA
c) jumbo
d) VA
e) assumable
When a borrower’s mortgage balance drops to ____ percent of the property’s appraised value, the mortgage servicers are required to cancel PMI for them.
a) 78
b) 80
c) 90
Which of the following would help you to meet the 80 percent loan-to-value test and remove PMI from your mortgage payments?
a) Excellent payment history and extra payments towards principal.
b) Renovation of your home.
c) Getting a competitive market analysis of your home’s value.
d) Refinancing your home with a different lender.
e) All of the above
True or false: The PMI law allows lenders to continue requiring high-risk borrowers to pay PMI until their balances shrink to 50 percent loan-to-value ratios.
a) True
b) False
Which of the following definitions best describes a rate-and-term refinance?
a) A refinance transaction in which the amount of money received from the new loan exceeds the total of the money needed to repay the existing first mortgage, closing costs, points and the amount of any outstanding liens.
b) The process of paying off one loan with the proceeds from a new loan using the same property as security, and taking advantage of lower interest rates, or a shorter term to build equity faster.
c) A loan that allows the borrower to obtain multiple advances of the loan proceeds at his or her own discretion, up to an amount that represents a specified percentage of the borrower's equity in a property.
Which of the following is often the best source for a refinance?
a) community bank
b) online lender
c) original lender
d) credit union
True or false: Lenders can make more money by foreclosing on mortgages, so you can expect little help from your lender if you have a financial crisis.
The best move to make if you know you’re going to miss a mortgage payment is to:
a) Panic. Avoid all phone calls from your lender.
b) Bury your head in the sand and ignore your lender’s phone calls.
c) Call your lender immediately and establish a repayment plan.
TABLE OF CONTENTS
CHAPTER I Lesson 1 Quiz
CHAPTER II Lesson 2 Quiz
CHAPTER III Lesson 3 Lesson 4 Lesson 5 Quiz
CHAPTER IV Lesson 6 Lesson 7 Quiz
CHAPTER V Lesson 8 Lesson 9 Quiz
CHAPTER VI Lesson 10 Lesson 11 Quiz
CHAPTER VII Lesson 12 Lesson 13 Lesson 14 Quiz
CHAPTER VIII Lesson 15 Lesson 16 Lesson 17 Lesson 18 Quiz
CHAPTER IX Lesson 19 Quiz
CHAPTER X Lesson 20 Quiz
CHAPTER XI Lesson 21 Quiz
CHAPTER XII Lesson 22 Lesson 23 Lesson 24 Quiz
CHAPTER XIII Lesson 25 Lesson 26 Lesson 27 Quiz
CHAPTER XIV Lesson 28 Lesson 29 Lesson 30 Quiz Definitions
* Mortgage rate may include points. See rate tables for details. Click here. * To see the definition of overnight averages click here.
Bankrate.com ®, Copyright © 2008 Bankrate, Inc., All Rights Reserved, Terms of Use.
