#1
What is the recommended percentage of your income to allocate towards housing expenses?
#2
What does PMI stand for in the context of homeownership?
Private Mortgage Insurance
Personal Money Investment
Property Management Index
Public Mortgage Interest
#3
What is the purpose of a home inspection?
To evaluate the home's condition
To verify the homeowner's identity
To determine property taxes
To estimate the market value of the home
#4
Which type of insurance protects homeowners against losses due to fire, theft, or other covered events?
Flood insurance
Homeowners insurance
Private Mortgage Insurance (PMI)
Title insurance
#5
What is an escrow account used for in homeownership?
To hold the borrower's down payment
To pay property taxes and insurance on behalf of the homeowner
To fund home renovations
To pay the real estate agent's commission
#6
Which of the following factors affects your credit score?
Length of credit history
Number of recent inquiries
Types of credit accounts
All of the above
#7
What is the purpose of a home appraisal?
To determine property taxes
To estimate the market value of the home
To assess homeowner's insurance
To verify the homeowner's identity
#8
What is the debt-to-income ratio used for in the context of mortgage lending?
To determine the borrower's credit score
To assess the borrower's ability to repay the loan
To calculate property taxes
To estimate homeowner's insurance costs
#9
Which of the following is NOT typically considered a closing cost when purchasing a home?
Property taxes
Title insurance
Appraisal fee
Real estate agent commission
#10
What is the 28/36 rule used for in the context of mortgage lending?
To calculate property taxes
To determine the borrower's credit score
To assess the borrower's debt-to-income ratio
To estimate homeowner's insurance costs
#11
What is an advantage of a fixed-rate mortgage compared to an adjustable-rate mortgage?
Predictable monthly payments
Lower initial interest rate
Ability to refinance easily
Higher potential savings over time
#12
What is the minimum credit score typically required to qualify for a conventional mortgage?
#13
What is the purpose of a home equity loan?
To finance the purchase of a home
To refinance an existing mortgage
To borrow against the equity in a home
To pay property taxes
#14
Which of the following factors can impact your mortgage eligibility?
Employment history
Marital status
Age
All of the above
#15
What is the purpose of a home equity line of credit (HELOC)?
To finance the purchase of a home
To refinance an existing mortgage
To borrow against the equity in a home
To pay property taxes