True or false: The only difference between a jumbo mortgage and a conventional mortgage is that a jumbo mortgage allows you to purchase a larger, more expensive home.
a) True
b) False
True or false: Two-step mortgages are fixed-rate mortgages that feature payments every two weeks rather than every month.
Which of the following correctly describes subprime mortgages?
a) Subprime mortgages are highly regulated, offering rates, fees, and underwriting guidelines consistent with Fannie Mae and Freddie Mac. The main difference is that they assist borrowers who can’t prove income, have low credit scores, bankruptcies and/or too much credit.
b) Subprime mortgages are highly regulated, offering rates, fees, and underwriting guidelines consistent with Fannie Mae and Freddie Mac. These mortgages are best for borrowers who need higher loan to values on property.
c) Subprime mortgages are loosely regulated, offering rates, fees and underwriting guidelines that vary drastically among lenders. They’re generally used by people whose credit rating is low. Borrowers need to comparison shop and hone their negotiating skills to find the best rate.
A down payment can best be defined as:
a) The amount of a property's purchase price that the buyer pays in cash and does not finance with a mortgage.
b) Expenses incurred by buyers and sellers in transferring ownership of a property. Normally includes an origination fee, an attorney's fee, taxes, escrow payments, and charges for title insurance.
c) The broker or salesperson's fee for assisting the transaction, usually expressed as a percentage of the total paid by the buyer.
True or false: You need to have a 20 percent down payment in order to buy a home.
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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