Mortgage Loan Question and Answers

Question 1

What mortgage term offers customers the highest monthly payment and the lowest overall interest cost?

Accepted Answer

10 years

Answer

30 years

Answer

15 years

Answer

20 years

Question 2

What is the minimal credit score that most lenders demand in order to offer you their best mortgage interest rate?

Accepted Answer

680

Answer

300

Answer

350

Answer

700

Question 3

What mortgage program guarantees that your interest rate and monthly mortgage payment won't change?

Accepted Answer

Fixed Rate

Answer

Interest Only (IO ARM)

Answer

Adjustable Rate (ARM)

Question 4

True or False: In order to acquire a property, you must have a down payment of at least 20% of the total cost.

Accepted Answer

False

Answer

True

Question 5

How much of your gross monthly income should you set aside for your mortgage and other debt obligations?

Accepted Answer

45%

Answer

60%

Answer

25%

Answer

60%

Question 6

Which of these expenses is included in the overall monthly cost of housing?

Accepted Answer

All these Costs

Answer

FHA MIP

Answer

Mortgage Payment

Answer

Homeowners Insurance

Answer

HOA Fees

Question 7

What paperwork must a lender deliver in order for a consumer to compare several mortgage offers?

Accepted Answer

Loan Estimate

Answer

Closing Disclosure

Answer

Verbal Summary