Unit 13 - Types of Mortgages Exam
Questions & Answers (Grade A+)
Adjustable Rate Mortgage (ARM) -
correct answer ✅Mortgage with an interest rate that adjusts
according to index.
Amortized Mortgage -
correct answer ✅Gradually and systematically kills principle by
equal regular payments.
Annual Percentage Rate (APR) -
correct answer ✅Includes interest rate and other loan costs.
Represents the total cost of credit.
Balloon Payment -
correct answer ✅A single large final payment including interest
due at loan maturity to offset lower monthly payments.
Biweekly Mortgage -
correct answer ✅Amortized loan where borrower makes
payments every two weeks.
Blanket Mortgage -
correct answer ✅Covers a number of parcels. Usually building lots.
,Unit 13 - Types of Mortgages Exam
Questions & Answers (Grade A+)
Closing Disclosure -
correct answer ✅Closing Statement Lender must provide within 3
business days per RESPA.
Conforming Loan -
correct answer ✅Loans that meet Fannie Mae guidelines.
Conventional Loan -
correct answer ✅Not insured or guaranteed by a Government
Agency. Lender assumes risk.
Demand Deposit -
correct answer ✅Checking account.
Discount Rate -
correct answer ✅Interest rate charged member banks for
borrowing from the Fed.
Disintermediation -
correct answer ✅Shortage of mortgage funds.
, Unit 13 - Types of Mortgages Exam
Questions & Answers (Grade A+)
Entitlement -
correct answer ✅Maximum amount government guarantees
Lender on behalf of Veteran.
Fannie Mae -
correct answer ✅Federal National Mortgage Association (FNMA).
Freddie Mac -
correct answer ✅Federal Home Loan Mortgage Corporation
(FHLMC). Supervised by FHFA.
Ginnie Mae -
correct answer ✅Government National Mortgage Association
(GNMA).
Home Equity Loan -
correct answer ✅Financing purchases along with consolidation of
existing credit card, tuition, medical debt.
Index -
correct answer ✅Economic indicator that is used to adjust the
interest rate in a loan linked with a recognized index.
Questions & Answers (Grade A+)
Adjustable Rate Mortgage (ARM) -
correct answer ✅Mortgage with an interest rate that adjusts
according to index.
Amortized Mortgage -
correct answer ✅Gradually and systematically kills principle by
equal regular payments.
Annual Percentage Rate (APR) -
correct answer ✅Includes interest rate and other loan costs.
Represents the total cost of credit.
Balloon Payment -
correct answer ✅A single large final payment including interest
due at loan maturity to offset lower monthly payments.
Biweekly Mortgage -
correct answer ✅Amortized loan where borrower makes
payments every two weeks.
Blanket Mortgage -
correct answer ✅Covers a number of parcels. Usually building lots.
,Unit 13 - Types of Mortgages Exam
Questions & Answers (Grade A+)
Closing Disclosure -
correct answer ✅Closing Statement Lender must provide within 3
business days per RESPA.
Conforming Loan -
correct answer ✅Loans that meet Fannie Mae guidelines.
Conventional Loan -
correct answer ✅Not insured or guaranteed by a Government
Agency. Lender assumes risk.
Demand Deposit -
correct answer ✅Checking account.
Discount Rate -
correct answer ✅Interest rate charged member banks for
borrowing from the Fed.
Disintermediation -
correct answer ✅Shortage of mortgage funds.
, Unit 13 - Types of Mortgages Exam
Questions & Answers (Grade A+)
Entitlement -
correct answer ✅Maximum amount government guarantees
Lender on behalf of Veteran.
Fannie Mae -
correct answer ✅Federal National Mortgage Association (FNMA).
Freddie Mac -
correct answer ✅Federal Home Loan Mortgage Corporation
(FHLMC). Supervised by FHFA.
Ginnie Mae -
correct answer ✅Government National Mortgage Association
(GNMA).
Home Equity Loan -
correct answer ✅Financing purchases along with consolidation of
existing credit card, tuition, medical debt.
Index -
correct answer ✅Economic indicator that is used to adjust the
interest rate in a loan linked with a recognized index.
