Mortgages (Personal Finance) Exam
Questions & Answers (Grade A+)
Conventional Mortgage -
correct answer ✅A loan that is not insured or guaranteed by the
federal government. A conventional, or conforming, mortgage
adheres to the guidelines set by Fannie Mae and Freddie Mac. It
may have either a fixed or adjustable rate.
Government-guaranteed financing programs -
correct answer ✅A program guaranteed by a third party in the
event that the borrower defaults. The program is quite often
guaranteed by a government agency which will purchase the debt
from the lending financial institution and take on responsibility for
the loan.
Balloon Mortgage -
correct answer ✅A mortgage in which a large portion of the
borrowed principal is repaid in a single payment at the end of the
loan period.
Adjustable Rate Mortgage -
correct answer ✅A home loan with an interest rate that might
increase or decrease during the life of the loan
Questions & Answers (Grade A+)
Conventional Mortgage -
correct answer ✅A loan that is not insured or guaranteed by the
federal government. A conventional, or conforming, mortgage
adheres to the guidelines set by Fannie Mae and Freddie Mac. It
may have either a fixed or adjustable rate.
Government-guaranteed financing programs -
correct answer ✅A program guaranteed by a third party in the
event that the borrower defaults. The program is quite often
guaranteed by a government agency which will purchase the debt
from the lending financial institution and take on responsibility for
the loan.
Balloon Mortgage -
correct answer ✅A mortgage in which a large portion of the
borrowed principal is repaid in a single payment at the end of the
loan period.
Adjustable Rate Mortgage -
correct answer ✅A home loan with an interest rate that might
increase or decrease during the life of the loan
