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CHAPTER IV
Special needs? Special mortgages
  1. True or false: The only difference between a jumbo mortgage and a conventional mortgage is that a jumbo mortgage allows you to purchase a larger, more expensive home.

    a) True
    b) False
  2. True or false: Two-step mortgages are fixed-rate mortgages that feature payments every two weeks rather than every month.

    a) True
    b) False
  3. Which of the following correctly describes subprime mortgages?

    a) Subprime mortgages are highly regulated, offering rates, fees, and underwriting guidelines consistent with Fannie Mae and Freddie Mac. The main difference is that they assist borrowers who can’t prove income, have low credit scores, bankruptcies and/or too much credit.
    b) Subprime mortgages are highly regulated, offering rates, fees, and underwriting guidelines consistent with Fannie Mae and Freddie Mac. These mortgages are best for borrowers who need higher loan to values on property.
    c) Subprime mortgages are loosely regulated, offering rates, fees and underwriting guidelines that vary drastically among lenders. They’re generally used by people whose credit rating is low. Borrowers need to comparison shop and hone their negotiating skills to find the best rate.
  4. A down payment can best be defined as:

    a) The amount of a property's purchase price that the buyer pays in cash and does not finance with a mortgage.
    b) Expenses incurred by buyers and sellers in transferring ownership of a property. Normally includes an origination fee, an attorney's fee, taxes, escrow payments, and charges for title insurance.
    c) The broker or salesperson's fee for assisting the transaction, usually expressed as a percentage of the total paid by the buyer.
  5. True or false: You need to have a 20 percent down payment in order to buy a home.

    a) True
    b) False

 

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

 
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