Mortgage Qualification and Financial Literacy Quiz
Test your knowledge on mortgage qualification, interest rates, closing costs, and more. Get prepared for your homebuying journey!
#1
What is the typical minimum credit score required to qualify for a mortgage?
#2
Which type of mortgage typically offers a fixed interest rate for the entire loan term?
Adjustable-rate mortgage (ARM)
Interest-only mortgage
Balloon mortgage
Fixed-rate mortgage
#3
Which of the following is NOT typically included in a mortgage payment?
Principal
Interest
Property taxes
Homeowner's insurance
#4
In the mortgage application process, what does 'closing costs' refer to?
The down payment amount
Fees associated with finalizing the sale
Monthly mortgage payments
Costs associated with homeowner's insurance
#5
Which of the following documents is NOT typically required during the mortgage application process?
Pay stubs
Tax returns
Credit card statements
Bank statements
#6
Which of the following factors can affect your mortgage interest rate?
Credit score
Employment history
Debt-to-income ratio
All of the above
#7
What is the debt-to-income ratio used for in mortgage qualification?
To determine the maximum loan amount
To calculate the interest rate
To verify employment history
To evaluate credit history
#8
What is Private Mortgage Insurance (PMI) used for?
To protect the lender in case of default
To protect the borrower in case of default
To cover closing costs
To reduce the interest rate
#9
What is the purpose of a pre-approval in the mortgage process?
To guarantee loan approval
To lock in the interest rate
To determine the maximum loan amount you qualify for
To set the closing date
#10
What is an escrow account in the context of a mortgage?
A savings account for the down payment
A fund held by a third party to pay property taxes and insurance
A separate account for mortgage payments
A type of loan modification
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