Mortgage Basics: Chapter 7 quiz

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.

In most cases, when can you ask that your private mortgage insurace 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 on 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.

What are the two major types of mortgage refinancing?

Cash-out, and rate and term

Cash-in and cash-out.

Cash-in and post.