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Mortgage Basics: Chapter 7 quiz

If you think you've mastered the material in Chapter 7 of Mortgage Basics, take our quiz. After you click the "submit" button, the answers will appear below.

  1. What's the major advantage of paying extra on your mortgage?

    The additional interest from the additional payment increases your tax deduction.
    You lengthen the term of your mortgage, reducing monthly payments.
    You shorten the length of your mortgage with additional principal payments.

  2. In most cases, when can you ask that your private mortgage insurance policy be ended?

    When the amount of equity you have in your home reaches 78 percent of the home's fair market value.
    It varies according to whether you have a fixed-rate or adjustable-rate mortgage, but in general, after two years.
    Once your equity position in your home reaches 20 percent of the current market value.

  3. What are the two major types of mortgage refinancing?

    Cash-out and rate-and-term
    Cash-in and cash-out.
    Cash-in and post.


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