Mortgages and Home Ownership — Quiz

Question 1

If someone buys a home for $200,000 and makes a 20 percent down payment, that person will have to

Revolt · Accepted Answer

pay $40,000 up front.

Question 2

What impact might an economic downturn have on a borrower’s fixed-rate mortgage?

Revolt · Accepted Answer

It has no impact because a fixed-rate mortgage cannot change.

Question 3

Borrowers choosing an adjustable-rate mortgage

Revolt · Accepted Answer

often pay a lower interest rate during the first few years.

Question 4

An adjustable-rate mortgage is one that

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can change.

Question 5

A borrower with bad credit is likely to be charged

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a high interest rate.

Question 6

What best explains the relationship between a borrower’s credit score and a down payment requirement?

Revolt · Accepted Answer

Someone with a high credit score may be required to make a lower down payment.

Question 7

If someone buys a home for $200,000 and makes a 20 percent down payment, that person will have to

Revolt · Accepted Answer

pay $40,000 up front.

Question 8

What is the best reason for homebuyers to create a budget before taking out a mortgage?

Revolt · Accepted Answer

to plan how to pay off the money they have borrowed

Question 9

Many people prefer a fixed-rate mortgage because it

Revolt · Accepted Answer

is predictable.

Question 10

Homeowners typically pay property taxes to

Revolt · Accepted Answer

help finance state and local governments.

Mortgages and Home Ownership — Quiz Answers