Which of the following best describes the role of the mortgage servicer?
a) Purchases mortgages for income or capital appreciation.
b) Collects monthly principal and interest payments from borrowers and manages escrow accounts for paying taxes and insurance premiums.
c) Makes a loan for a specific amount of money to the borrower.
Joe plans on making additional payments on his fixed-rate mortgage. What benefits will he realize by prepaying his mortgage?
a) Reduces his balance, loan term and overall interest bill, but not his monthly payments.
b) Reduces his balance, loan term, overall interest bill and monthly payments.
c) Reduces his balance, loan term, monthly payments and private mortgage insurance.
Which of the following best describes the advantage of an informal biweekly prepayment schedule set up by the borrower over a formal biweekly prepayment plan managed by a lender?
a) You pay down the loan quicker with an informal plan.
b) The formal plan is more structured so that if an unforeseen financial problem arises, you are still responsible for the biweekly payment, whereas with an unstructured plan, you have more flexibility.
True or false: Prepaying your mortgage could adversely affect your tax advantage.
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
* Mortgage rate may include points. See rate tables for details. Click here. * To see the definition of overnight averages click here.
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