by tkrajcik
Understanding mortgages is crucial for anyone looking to purchase a home or refinance an existing loan. This quiz will challenge your knowledge on various aspects of mortgages, from interest rates to loan types, ensuring you’re well-prepared for your financial journey. Let’s see how much you know!
We recommend that you do not leave the page that you are taking this quiz in. Stay honest 🙂
Mortgage Quiz Questions Overview
1. What is a mortgage?
A type of insurance
A loan to purchase a home
A savings account
A type of investment
2. Which type of mortgage has an interest rate that remains the same for the entire term of the loan?
Adjustable-rate mortgage
Fixed-rate mortgage
Interest-only mortgage
Balloon mortgage
3. What does APR stand for in mortgage terms?
Annual Payment Rate
Annual Percentage Rate
Annual Principal Rate
Annual Payment Ratio
4. What is the typical down payment percentage required for a conventional mortgage?
0%
3%
20%
50%
5. Which government agency backs FHA loans?
Federal Housing Administration
Department of Veterans Affairs
Federal Reserve
Federal Deposit Insurance Corporation
6. What is private mortgage insurance (PMI)?
Insurance for the lender in case the borrower defaults
Insurance for the borrower in case of job loss
Homeowner’s insurance
Insurance for natural disasters
7. What is an amortization schedule?
A schedule of property taxes
A schedule of insurance payments
A schedule of loan repayments showing principal and interest
A schedule of home maintenance
8. What is a balloon mortgage?
A mortgage with increasing payments
A mortgage with a large payment due at the end
A mortgage with decreasing payments
A mortgage with fixed payments
9. Which type of mortgage is typically offered to veterans?
FHA loan
VA loan
Conventional loan
Jumbo loan
10. What does refinancing a mortgage mean?
Paying off the mortgage early
Obtaining a new mortgage to replace the existing one
Changing the property on the mortgage
Adding a second mortgage
We recommend that you do not leave the page that you are taking this quiz in. Stay honest 🙂
