A Test On Mortgage! Trivia Knowledge Quiz

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| By Sanya_k29
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Sanya_k29
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A Test On Mortgage! Trivia Knowledge Quiz - Quiz


Test on mortgage trivia knowledge. Most people who do not have enough cash to purchase their homes choose to do so by accessing mortgage finance. The interest rate of the loan varies depending on various factors such as a person’s credit score. Do take up the quiz below and get to see just how much you know about mortgage loan financing and accessibility to those that opt for it.


Questions and Answers
  • 1. 

    I would like a loan to purchase a home, what is your interest rate?

    • A.

      10.4%

    • B.

      9.8%

    • C.

      9.4%

    • D.

      10.5%

    Correct Answer
    C. 9.4%
    Explanation
    The correct answer is 9.4%. This is the interest rate offered by the lender for the loan to purchase a home. It is the lowest among the given options, making it the most favorable choice for the borrower. A lower interest rate means lower monthly payments and less overall interest paid over the life of the loan.

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  • 2. 

    How much financing would I get for a piece of land with infrastructure?

    • A.

      50%

    • B.

      75%

    • C.

      90%

    • D.

      100%

    Correct Answer
    B. 75%
    Explanation
    The correct answer is 75%. This suggests that if you have a piece of land with infrastructure, you would be able to secure financing for 75% of its value. This means that the lender would be willing to provide you with a loan or funding equivalent to 75% of the total worth of the land and its associated infrastructure.

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  • 3. 

    What is the maximum financing would I get to purchase a house?

    • A.

      $50,000,000

    • B.

      85%

    • C.

      $100,000,000

    • D.

      90%

    Correct Answer
    D. 90%
    Explanation
    The maximum financing one would get to purchase a house is 90%. This means that the lender is willing to provide a loan amount that covers 90% of the total cost of the house. The remaining 10% would need to be covered by the buyer as a down payment.

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  • 4. 

    What is the amount of financing I could get for a piece of land in Clarendon, where there is no development?

    • A.

      50%

    • B.

      $1,000,000

    • C.

      75%

    • D.

      $2,000,000

    Correct Answer
    A. 50%
    Explanation
    The correct answer is 50%. This suggests that the amount of financing that could be obtained for a piece of land in Clarendon, where there is no development, is 50% of the total value of the land. This means that if the land is worth $1,000,000, the financing amount would be $500,000.

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  • 5. 

    I don't need a valuation report on my house to process a mortgage.

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    A valuation report is typically required by lenders to assess the value of a property before approving a mortgage. This report helps them determine the loan amount they can offer based on the property's market value. Without a valuation report, it would be difficult for lenders to accurately assess the property's worth and make an informed decision regarding the mortgage. Therefore, it is not true that a valuation report is not needed for processing a mortgage.

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  • 6. 

    I can get a home loan in U.S. currency.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    The statement "I can get a home loan in U.S. currency" is true. In the United States, it is common for individuals to obtain home loans in U.S. currency. This means that the loan amount, interest rates, and repayment terms are all denominated in U.S. dollars. This allows borrowers to easily understand and manage their loan obligations without having to worry about currency exchange rates or fluctuations.

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  • 7. 

    What can I use a JN Home Equity loan to do?

    • A.

      Refinancing a loan at BNS

    • B.

      Pay my daughter's school fee

    • C.

      Pay for my parent's hospital stay

    • D.

      All of the above

    • E.

      1 and 3

    Correct Answer
    D. All of the above
    Explanation
    A JN Home Equity loan can be used for multiple purposes, including refinancing a loan at BNS, paying for a daughter's school fee, and paying for a parent's hospital stay. Therefore, the correct answer is "All of the above."

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  • 8. 

    Which document is not needed to process my home loan?

    • A.

      Utility Bill

    • B.

      ID

    • C.

      TRN

    • D.

      Proof of Income

    • E.

      Valuation Report

    • F.

      Surveyor's Report

    Correct Answer
    A. Utility Bill
    Explanation
    A utility bill is not needed to process a home loan because it is not directly related to the financial aspect of the loan. A utility bill is typically used to verify a person's residential address, but it does not provide information about their income, creditworthiness, or the value of the property. Therefore, it is not necessary for the loan processing.

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  • 9. 

    Late fees are calculated:

    • A.

      Daily

    • B.

      Weekly

    • C.

      Monthly

    • D.

      Fortnightly

    Correct Answer
    A. Daily
    Explanation
    Late fees are calculated on a daily basis. This means that for each day that a payment is late, a certain amount of fees will be charged. This method allows for more accurate calculations and ensures that the fees reflect the actual number of days the payment is overdue. Other options such as weekly, monthly, or fortnightly would imply that the fees are charged based on a longer time period, which may not accurately reflect the extent of the delay.

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  • 10. 

    I would like a Statement to Close on my account, where would I request this?

    • A.

      The Legal Department

    • B.

      Mortgage Services

    • C.

      Mortgage Centre

    • D.

      None of the above

    Correct Answer
    B. Mortgage Services
    Explanation
    To request a Statement to Close on an account, one would need to contact Mortgage Services. This department is responsible for handling mortgage-related matters and would be the appropriate channel to request a statement for closing the account. The Legal Department may deal with legal matters but not specifically with account statements. The Mortgage Centre is not mentioned as an option, so it is not relevant to this question.

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  • 11. 

    What kind of loan would I get if I wanted to get a solar heater for my home?

    • A.

      Home Improvement

    • B.

      Home Equity

    • C.

      Refinancing

    • D.

      JN Home Loan

    Correct Answer
    A. Home Improvement
    Explanation
    If someone wants to get a loan to install a solar heater in their home, they would most likely apply for a Home Improvement loan. This type of loan is specifically designed to fund renovations or improvements to a property, such as installing energy-efficient appliances or making eco-friendly upgrades. Since a solar heater falls under the category of home improvement, this would be the appropriate loan option.

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  • 12. 

    Where on Phoenix would I go to see the interest rate on my loan?

    • A.

      Edit RIM

    • B.

      History

    • C.

      Display

    • D.

      Portfolio

    Correct Answer
    C. Display
    Explanation
    To see the interest rate on your loan, you would go to the "Display" option on Phoenix. This option most likely provides a summary or detailed view of your loan information, including the interest rate. It allows you to view and access important details related to your loan, helping you stay informed about the terms and conditions.

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  • 13. 

    If I wanted to get a mortgage, and the loans officer told me that the monthly payment is $50,000, and I am earning $100,000, would I be able to qualify for the loan?

    • A.

      Yes

    • B.

      No

    Correct Answer
    A. Yes
    Explanation
    Yes, you would be able to qualify for the loan because your monthly payment of $50,000 is only 50% of your monthly income of $100,000. Generally, lenders consider a debt-to-income ratio of 43% or lower to be acceptable for mortgage qualification, so in this case, your ratio is well below that threshold.

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  • 14. 

    What is my mortgage payment comprised of?

    • A.

      Peril/Life Insurance

    • B.

      Interest

    • C.

      Principal

    • D.

      Interest and Principal

    • E.

      1,2 and 3

    Correct Answer
    E. 1,2 and 3
    Explanation
    The mortgage payment is comprised of three components: peril/life insurance, interest, and principal. Peril/life insurance is included to protect the property from potential risks. The interest is the cost of borrowing the money from the lender, while the principal is the actual amount borrowed. Therefore, the correct answer is 1, 2, and 3, as all three components are included in the mortgage payment.

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  • 15. 

    Who cannot take out a mortgage?

    • A.

      A registered company

    • B.

      A church

    • C.

      My 17 year old daughter who has her driver's license

    • D.

      Employees

    Correct Answer
    C. My 17 year old daughter who has her driver's license
    Explanation
    A 17-year-old daughter who has her driver's license cannot take out a mortgage because she is a minor and does not have the legal capacity to enter into a binding contract such as a mortgage. Mortgage contracts typically require the borrower to be of legal age, usually 18 years or older. Additionally, minors are generally not eligible for mortgages as they may not have a stable income or credit history to qualify for a loan.

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  • 16. 

    If I have an existing mortgage and my monthly payment of $37,500 is due on the 4th of every month; in June I forgot to make a payment, but at the end of July I paid $75,000. Would I have arrears?

    • A.

      Yes

    • B.

      No

    Correct Answer
    A. Yes
    Explanation
    Yes, you would have arrears. Arrears refer to unpaid or overdue payments. In this case, you missed the payment in June and only made a double payment in July. Therefore, you were behind on your payment for one month, resulting in arrears.

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