FREDDIE MAC - CREDIT SMART ACTUAL 2025/2026 QUESTIONS AND 100% CORRECT ANSWERS

FREDDIE MAC - CREDIT SMART ACTUAL 2025/2026 QUESTIONS AND 100% CORRECT ANSWERS The percentage of your gross monthly income that goes toward paying for your housing expenses is called the "housing expense ratio" and is based on the total housing payment, which includes: - Answer - Principal, interest, property taxes, homeowner's insurance, mortgage insurance, homeowner's or condo association fees Lenders don't include your future housing payment in your debt-toincome ratio, only all other outstanding debts. - Answer -False The principal amount is the total amount borrowed. - Answer -True Do lenders use gross income or net profits when calculating mortgage affordability for self-employed borrowers? - Answer -Net profits An escrow account is a special account managed by the borrower that holds funds for property taxes and property insurance payments. - Answer -False Having 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. - Answer -TrueNeed assistance in Online classes, Exams & Assignments? Reach out for Full Course Assistance, Plagiarism-free Essay Writing, Research Paper & Discussion Posts. Confidential & Secure! Email now at: Capital - or cash to close - refers to the funds you need to save in order to cover the cost of down paym