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Mortgage Review

Answer the following questions about mortgages.

  1. A _____ will provide you with a lower monthly payment.
    1. 15-year loan
    2. 30-year loan

    Answer: B. A 30-year loan will provide you with a lower monthly payment.

  2. A _____ will build equity faster.
    1. 15-year loan
    2. 30-year loan

    Answer: A. A 15-year loan will build equity faster.

  3. A _____ will normally start off at a lower rate with lower payments.
    1. fixed rate loan
    2. variable rate loan

    Answer: B. A variable rate loan will normally start off at a lower rate with lower payments.

  4. ______ is/are for a government sponsored mortgage/s.
    1. VA loans
    2. FHA loans
    3. Neither VA nor FHA loans
    4. Both VA and FHA loans

    Answer: D. Both VA and FHA loans are for a government sponsored mortgages.

  5. Use the Bankrate Mortgage Calculator to calculate the following payments. We will figure these without a down payment.
    Mortgage Calculations
    Home Price Term Rate Estimated Monthly Payment
    $75,000 15 year 3.12% ?
    $75,000 30 year 3.12% ?
    $75,000 15 year 4.32% ?
    $75,000 30 year 4.32% ?
    $75,000 15 year 3.82% ?
    $75,000 30 year 3.82% ?

    Answers:

    Mortgage Calculations
    Home Price Term Rate Estimated Monthly Payment
    $75,000 15 year 3.12% $522.00
    $75,000 30 year 3.12% $321.00
    $75,000 15 year 4.32% $566.00
    $75,000 30 year 4.32% $372.00
    $75,000 15 year 3.82% $548.00
    $75,000 30 year 3.82% $350.00