If your down payment is less than ______ percent, you’ll most likely get private mortgage insurance.
a) 10
b) 15
c) 20
True or false: Paying a higher interest rate to avoid private mortgage insurance is never a good financial plan.
a) True
b) False
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
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.
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
