If you think you’ve mastered the material in this chapter, take our quiz. After you click the ”submit” button, the answers will appear below.

  1. Which of the following best describes a balloon payment?

    One-time final payment of outstanding loan debt
    Monthly payments, which include principal and interest
    Annual payments of interest due at the loan anniversary date
  2. True or false: A lender would never offer a homeowner a loan for more than the property is actually worth.

    True
    False
  3. If you have been scammed by a home equity or mortgage lender, contact:

    Local Better Business Bureau
    Federal Trade Commission
    The mayor of your city

— Updated: April 1, 2006

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