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CHAPTER V
Don't be surprised by these common tack-on costs
  1. If your down payment is less than ______ percent, you’ll most likely get private mortgage insurance.

    a) 10
    b) 15
    c) 20
  2. True or false: Paying a higher interest rate to avoid private mortgage insurance is never a good financial plan.

    a) True
    b) False
  3. Most homebuyers try to avoid ________, but may be willing to pay ________ to reduce the interest rate on their loan.

    a) discount points, origination points
    b) discount points, private mortgage insurance
    c) origination points, discount points
  4. True or false: For every point you pay to lower your interest rate, you have to live in the house longer before the extra upfront expenses pay off.

    a) True
    b) False
  5. Joe decides to pay discount points in order to lower his interest rate. These discount points will show up in the annual percentage rate. Which of the following correctly describes Joe’s options for paying for these points?

    a) Joe can pay for them out of pocket at his closing.
    b) Joe can roll the cost into his mortgage.
    c) Joe can opt to pay for them out of pocket or roll them into his loan.

 

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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