CRU Residential Mortgage Products & Guidelines 1

Question 1

What is a fixed-rate mortgage?

Accepted Answer

A loan with fixed interest and consistent payments

Answer

A loan with changing monthly payments

Answer

A loan with a fixed monthly payment but variable interest

Answer

A short-term business loan

Question 2

Which type of mortgage typically starts with a lower interest rate?

Accepted Answer

Adjustable-rate mortgage

Answer

Reverse mortgage

Answer

Fixed-rate mortgage

Answer

Balloon mortgage

Question 3

What is a conventional mortgage?

Accepted Answer

A non-government backed mortgage

Answer

A loan backed by the VA

Answer

A loan with no income verification

Answer

A commercial property loan

Question 4

What is the purpose of private mortgage insurance (PMI)?

Accepted Answer

To protect the lender from borrower default

Answer

To protect the borrower

Answer

To increase the down payment

Answer

To guarantee loan approval

Question 5

What defines a jumbo loan?

Accepted Answer

A loan that exceeds conforming loan limits

Answer

A loan for mobile homes

Answer

A government-backed loan

Answer

A loan with high interest

Question 6

Which loan is best suited for first-time homebuyers with low income?

Accepted Answer

FHA loan

Answer

Conventional loan

Answer

VA loan

Answer

Jumbo loan

Question 7

What does the loan-to-value (LTV) ratio represent?

Accepted Answer

Loan amount compared to home value

Answer

Annual income vs. loan size

Answer

Credit score vs. income

Answer

Down payment vs. loan term

Question 8

Which document outlines the key details of the mortgage loan for the borrower?

Accepted Answer

Loan Estimate

Answer

Mortgage note

Answer

Deed of trust

Answer

Appraisal report

Question 9

What is one benefit of a VA loan?

Accepted Answer

No down payment required

Answer

Requires high credit score

Answer

Mandatory PMI

Answer

Higher interest rate