Freddie Mac - Credit Smart Exam
Questions With Correct Answers
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Terms in this set (84)
,The percentage Principal, interest, property taxes,
of your gross homeowner's insurance, mortgage
monthly income insurance, homeowner's or condo
that goes association fees
toward paying
for your housing
expenses is
called the
"housing
expense ratio"
and is based on
the total
housing
payment, which
includes:
Lenders don't False
include your
future housing
payment in your
debt-to-income
ratio, only all
other
outstanding
debts.
,The principal True
amount is the
total amount
borrowed.
Do lenders use Net profits
gross income or
net profits when
calculating
mortgage
affordability for
self-employed
borrowers?
An escrow False
account is a
special account
managed by the
borrower that
holds funds for
property taxes
and property
insurance
payments.
, Having True
adequate cash
reserves
demonstrates to
your lender that
you have
responsibly
managed your
money and
have savings
and other assets
to fall back on
in case of
emergency.
Capital - or True
cash to close -
refers to the
funds you need
to save in order
to cover the
cost of down
payment and
closing costs.
Questions With Correct Answers
Save
Terms in this set (84)
,The percentage Principal, interest, property taxes,
of your gross homeowner's insurance, mortgage
monthly income insurance, homeowner's or condo
that goes association fees
toward paying
for your housing
expenses is
called the
"housing
expense ratio"
and is based on
the total
housing
payment, which
includes:
Lenders don't False
include your
future housing
payment in your
debt-to-income
ratio, only all
other
outstanding
debts.
,The principal True
amount is the
total amount
borrowed.
Do lenders use Net profits
gross income or
net profits when
calculating
mortgage
affordability for
self-employed
borrowers?
An escrow False
account is a
special account
managed by the
borrower that
holds funds for
property taxes
and property
insurance
payments.
, Having True
adequate cash
reserves
demonstrates to
your lender that
you have
responsibly
managed your
money and
have savings
and other assets
to fall back on
in case of
emergency.
Capital - or True
cash to close -
refers to the
funds you need
to save in order
to cover the
cost of down
payment and
closing costs.
