Real Estate Financing and Mortgage Concepts Quiz

A mortgage with a stable, unchanging interest rate throughout the loan term.

The ratio of the loan amount to the appraised value of the property, indicating the risk for the lender.

A initial payment made by the buyer, representing a percentage of the property's total purchase price.

A mortgage with a stable interest rate throughout the 30-year loan term.

The total cost of borrowing, expressed as an annual percentage, including interest and additional fees.

An upfront fee paid to lower the interest rate, typically expressed as a percentage of the loan amount.

Insurance protecting the lender against financial loss if the borrower defaults on the mortgage.

Evaluating the creditworthiness of the borrower and determining the risk associated with granting the loan.

A separate account where funds are held to cover property taxes and insurance costs.

A ratio comparing the borrower's debt to their income, used to assess their ability to manage additional debt.

Investigating the property's history to confirm legal ownership and identify any outstanding claims or issues.

A mortgage exceeding the maximum loan amount set by government-sponsored entities.

The systematic repayment of the loan amount over time through scheduled installment payments.

A legal right or interest that a lender has in the borrower's property until the debt is repaid.

A fee imposed if the borrower pays off the mortgage before the agreed-upon term.