Intro to Housing
Mortgage Basics
Alright, what else do I need to know about mortgages?
Every loan is made up of three parts: the length of the loan; the interest rate; and the amount you’re borrowing. With all three, mortgages can be different from other loans.
What’s an adjustable-rate mortgage?
A mortgage with an interest rate that becomes variable after a set period
A mortgage with a fixed maturity date
A mortgage with an interest rate that remains fixed
A mortgage with a variable maturity date
What’s the standard amount of time for repaying a mortgage?
20 years
10 years
There is no standard
30 years
Which of the following is NOT a part of a mortgage?
The amount you’re borrowing
Title insurance
The interest rate
The length of the loan
Which of the following is NOT a feature of a jumbo mortgage?
It comes with tougher borrowing requirements
It applies to houses with more than four bedrooms
It applies to mortgages of more than $832,750
It comes with a higher interest rate