#1
What does APR stand for in the context of mortgages?
Annual Percentage Rate
Adjusted Payment Rate
Average Payment Ratio
Accumulated Principal Return
#2
What is the term used for a loan where the borrower puts up an asset as collateral?
Unsecured loan
Secured loan
Balloon loan
Installment loan
#3
What is the term for the initial payment made when purchasing a home?
Mortgage
Down payment
Closing costs
Escrow
#4
Which of the following is not a type of mortgage?
Fixed-rate mortgage
Adjustable-rate mortgage
Reverse mortgage
Stable-rate mortgage
#5
What is the term for the interest rate that financial institutions charge each other for short-term loans?
Prime rate
Federal funds rate
LIBOR
Discount rate
#6
Which of the following is an advantage of renting over buying a home?
Building equity
Fixed monthly payments
Flexibility to move
Tax benefits
#7
What does LTV stand for in the context of mortgages?
Loan Term Value
Loan-to-Value Ratio
Long-Term Valuation
Limited Time Variant
#8
What does PMI stand for in the context of mortgages?
Private Mortgage Insurance
Principal and Interest
Property Management Income
Potential Market Index
#9
What is the term for a mortgage loan that exceeds the conforming loan limit set by the government-sponsored enterprises (GSEs)?
Jumbo mortgage
Conforming mortgage
Subprime mortgage
Balloon mortgage
#10
What is the term for a legal process by which a lender takes control of a property if the borrower fails to make mortgage payments?
Foreclosure
Repossession
Eviction
Default
#11
What is the term for a document that outlines the terms and conditions of a mortgage loan?
Warranty deed
Mortgage note
Amortization schedule
Loan estimate
#12
Which of the following is a type of mortgage insurance that protects lenders against losses if a borrower defaults on their loan?
Homeowner's insurance
FHA insurance
PMI
Title insurance
#13
What does ARM stand for in the context of mortgages?
Annual Return Margin
Amortizing Rate Mortgage
Adjustable Rate Mortgage
Asset Reserve Management
#14
What does DTI stand for in the context of mortgage lending?
Debt-to-Income Ratio
Down Payment Term
Deferred Tax Income
Deposit Threshold Index
#15
What does HELOC stand for in the context of mortgages?
Home Equity Line of Credit
Housing Expense to Loan Calculation
Hazardous Equity Loss On Collateral
Housing Expense Limitation Ordinance Calculation
#16
What does CFPB stand for in the context of mortgage regulation?
Consumer Financial Protection Bureau
Certified Financial Planning Board
Credit Fairness and Protection Bureau
Comprehensive Financial Planning Bureau
#17
What does FHA stand for in the context of mortgages?
Federal Home Association
Finance and Housing Agency
Federal Housing Administration
Federally Held Assets