CFS 345 LATEST 2026 CORE MAIN QUESTIONS AND
ANSWERS SURE A+
✔✔How are mortgage payments divided? - ✔✔divided between principle (amount
borrowed) and interest; each month a little bit more gets applied to the principle balance
✔✔List the 5 types of mortgages described in your book:
1. Adjustable-Rate mortgages
2. _____________
3. Interest-Only mortgages
4. Negative-Amortization loans
5. ________________ - ✔✔balloon mortgages; government-backed mortgages
✔✔What are the two basic guidelines that banks and mortgage companies follow in
order to estimate how much a person can expect to borrow when buying a home?
Principle, interest, taxes, and insurance (PITI) should't exceed ___% of your gross
income
PITI plus all your other long-term debt shouldn't exceed ___% of your gross income -
✔✔28%; 36%
✔✔What is an escrow account?
A special account that your lender sets up if your mortgage payments will include
amounts for _______ and _______ and the lender or mortgage servicing company will
be distributing the money when these bills come due - ✔✔property taxes; homeowner's
insurance
✔✔When would refinancing your mortgage NOT make sense? - ✔✔if you've had it for
more than ten years
✔✔What is one way your can shave thousands of dollars off the long-term costs of your
mortgage by prepaying? - ✔✔add extra to your regular monthly payment; make one
extra payment a year; pay half your regular payment every two weeks
✔✔When signing a lease, you may need ___ month's rent - ✔✔3 (deposit, first, last)
✔✔Getting ready to own a home:
_________
check your credit report
have an accurate net worth statement
_________
create a home owner budget
prepare a down payment - ✔✔pay off debt; avoid new loans
, ✔✔_______________- PMI; allows purchase with less than 20% down; ends at 22%
equity - ✔✔Private Mortgage insurance
✔✔Take out a ___ or ___ year mortgage rather than a 30 year mortgage - ✔✔15 or 20
✔✔Types of mortgages:
________- same rate throughout, standard terms - ✔✔Fixed rate mortgages
✔✔Types of mortgages:
__________- generally allow up to 6% interest rate hike; stressful and risky for most
people - ✔✔adjustable rate mortgages
✔✔Types of mortgages:
_______- 5-7 year terms; allow for lower monthly payments; stressful and risky for most
people - ✔✔Balloon mortgages
✔✔Types of mortgages:
_________- allow lower payments; no increase in equity; "for people who expect a
windfall"; stressful and risky for most people - ✔✔Interest-only mortgages
✔✔Types of mortgages:
__________- no principle payment; interest paid does not cover interest owed; just plain
crazy talk for most people - ✔✔Negative amortization mortgage
✔✔Bank requires __________ if you have a mortgage - ✔✔homeowner's insurance
✔✔How did people get around needing permission to build on the Bauhaus museum
preservation site? - ✔✔tiny houses on wheels
✔✔TITO HOUSE is an abbreviation for _________ - ✔✔tiny townhouse
✔✔What is the size of the smallest apartment in Germany? - ✔✔6.4 meters big
✔✔What two terms make up the idea of furnitecture? - ✔✔furniture and architecture
✔✔There is a law in Berlin that if you build a structure smaller than ________ you do
not need planning permission because it is not declared as an actual architectural
"thing" - ✔✔10 sq meters
✔✔The narrator's definition of a house is" it should always be in symbiosis with
________________ - ✔✔neighborhood
ANSWERS SURE A+
✔✔How are mortgage payments divided? - ✔✔divided between principle (amount
borrowed) and interest; each month a little bit more gets applied to the principle balance
✔✔List the 5 types of mortgages described in your book:
1. Adjustable-Rate mortgages
2. _____________
3. Interest-Only mortgages
4. Negative-Amortization loans
5. ________________ - ✔✔balloon mortgages; government-backed mortgages
✔✔What are the two basic guidelines that banks and mortgage companies follow in
order to estimate how much a person can expect to borrow when buying a home?
Principle, interest, taxes, and insurance (PITI) should't exceed ___% of your gross
income
PITI plus all your other long-term debt shouldn't exceed ___% of your gross income -
✔✔28%; 36%
✔✔What is an escrow account?
A special account that your lender sets up if your mortgage payments will include
amounts for _______ and _______ and the lender or mortgage servicing company will
be distributing the money when these bills come due - ✔✔property taxes; homeowner's
insurance
✔✔When would refinancing your mortgage NOT make sense? - ✔✔if you've had it for
more than ten years
✔✔What is one way your can shave thousands of dollars off the long-term costs of your
mortgage by prepaying? - ✔✔add extra to your regular monthly payment; make one
extra payment a year; pay half your regular payment every two weeks
✔✔When signing a lease, you may need ___ month's rent - ✔✔3 (deposit, first, last)
✔✔Getting ready to own a home:
_________
check your credit report
have an accurate net worth statement
_________
create a home owner budget
prepare a down payment - ✔✔pay off debt; avoid new loans
, ✔✔_______________- PMI; allows purchase with less than 20% down; ends at 22%
equity - ✔✔Private Mortgage insurance
✔✔Take out a ___ or ___ year mortgage rather than a 30 year mortgage - ✔✔15 or 20
✔✔Types of mortgages:
________- same rate throughout, standard terms - ✔✔Fixed rate mortgages
✔✔Types of mortgages:
__________- generally allow up to 6% interest rate hike; stressful and risky for most
people - ✔✔adjustable rate mortgages
✔✔Types of mortgages:
_______- 5-7 year terms; allow for lower monthly payments; stressful and risky for most
people - ✔✔Balloon mortgages
✔✔Types of mortgages:
_________- allow lower payments; no increase in equity; "for people who expect a
windfall"; stressful and risky for most people - ✔✔Interest-only mortgages
✔✔Types of mortgages:
__________- no principle payment; interest paid does not cover interest owed; just plain
crazy talk for most people - ✔✔Negative amortization mortgage
✔✔Bank requires __________ if you have a mortgage - ✔✔homeowner's insurance
✔✔How did people get around needing permission to build on the Bauhaus museum
preservation site? - ✔✔tiny houses on wheels
✔✔TITO HOUSE is an abbreviation for _________ - ✔✔tiny townhouse
✔✔What is the size of the smallest apartment in Germany? - ✔✔6.4 meters big
✔✔What two terms make up the idea of furnitecture? - ✔✔furniture and architecture
✔✔There is a law in Berlin that if you build a structure smaller than ________ you do
not need planning permission because it is not declared as an actual architectural
"thing" - ✔✔10 sq meters
✔✔The narrator's definition of a house is" it should always be in symbiosis with
________________ - ✔✔neighborhood
