Are You A Mortgage Genius Or A Mortgage Idiot?

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| By Fullbeaker
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Fullbeaker
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Quizzes Created: 1 | Total Attempts: 232
Questions: 10 | Attempts: 232

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Are You A Mortgage Genius Or A Mortgage Idiot? - Quiz

Test your knowledge! This quiz will tell you your mortgage IQ. Are you ready to buy a home?


Questions and Answers
  • 1. 

    What’s the minimum down payment required to buy a house?

    • A.

      0%

    • B.

      3.5%

    • C.

      5%

    • D.

      20%

    Correct Answer
    A. 0%
    Explanation
    The correct answer is 0%. USDA and VA loans do not require a down payment. FHA loans require 3.5% down and conventional loans with private mortgage insurance typically require at least 5% down. Learn more about available loan types here or get in touch with qualified mortgage lenders now by visiting www.mymortgageinsider.com

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  • 2. 

    The news is always talking about the Federal Reserve and interest rates. Are mortgage interest rates determined by the Fed?

    • A.

      Yes

    • B.

      No

    Correct Answer
    B. No
    Explanation
    The correct answer is no. The Federal Reserve has some influence, but mortgage interest rates are determined by investors. So they change daily and throughout the day. It’s important to get quote from multiple lenders so you know you’re comparing apples to apples. Start your search at MyMortgageInsider.com and we’ll connect you with up to four lenders.

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  • 3. 

    Let’s put today’s mortgage rates – which are in the mid 4% range - in context. In the year 2000, 30 year fixed interest rates were in the…

    • A.

      High 6% range

    • B.

      Low 5% range

    • C.

      Low 7% range

    • D.

      Mid 8% range

    Correct Answer
    D. Mid 8% range
    Explanation
    Mid 8% range. In May of 2000, the 30 year fixed rate loan averaged 8.52% according to Freddie Mac. A 250k loan would have cost you $650 more per month. And rates could rise again. Lock in your rate here. (Don’t worry – we’ll open a new window so you can finish the quiz.)

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  • 4. 

    If I have less-than-perfect credit, I’ll most likely qualify for a(n) ____ loan…

    • A.

      FHA, USDA, or VA

    • B.

      Jumbo

    • C.

      Conventional

    Correct Answer
    A. FHA, USDA, or VA
    Explanation
    The correct answer is an FHA, USDA, or VA loan since these loan types allow for lower credit scores. Conventional and jumbo loans are typically for high-credit borrowers. Learn how the right loan type can help you qualify at www.mymortgageinsider.com.

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  • 5. 

    I know all about fixed rate 30 year loans, but what about an ARM? An ARM is...

    • A.

      Adjustable Rate Mortgage

    • B.

      Another Ripoff Mortgage

    • C.

      Adjustable Rising Mortgage

    • D.

      I have no idea but they are definitely bad news

    Correct Answer
    A. Adjustable Rate Mortgage
    Explanation
    The correct answer is an Adjustable Rate Mortgage. An ARM loan might be a good idea if you plan to sell or refinance in the near future, since they provide a very low initial rate. Be careful though. If you keep your mortgage longer than planned, you could end up with a high interest rate. To get in touch with a qualified mortgage lenders right now visit www.mymortgageinsider.com.

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  • 6. 

    I can have my credit pulled up to ___ times by different mortgage lenders in a 14-day period and have only one inquiry added to my credit report.

    • A.

      2

    • B.

      4

    • C.

      10

    • D.

      Unlimited

    Correct Answer
    D. Unlimited
    Explanation
    The correct answer is Unlimited. As long as the same type of creditor pulls your credit within a 14-day period, it only counts as one inquiry on your credit report. So there is no downside to shopping around and getting multiple quotes. To get in touch with qualified mortgage lenders right now visit www.mymortgageinsider.com

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  • 7. 

    By law, all lenders must charge the same amount in fees

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    The correct answer is False. Lenders fees can vary greatly, so be sure to get multiple quotes. A quote should include the interest rate and a full breakdown of fees as well. Get quotes from up to four lenders here.

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  • 8. 

    I need a mortgage pre-qualification before making an offer on a home.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    The correct answer is True. Real estate agents won’t let you write up an offer on a home until you have a pre-qualification from a lender. Get prequalified here.

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  • 9. 

    On a conventional loan, I don't need private mortgage insurance (PMI) if I make a 20% or greater down payment.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    The correct answer is True. You will only need PMI if your down payment is less than 20%. Learn about various types of mortgages at MyMortgageInsider.com.

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  • 10. 

    When talking about mortgages, a “point” is a fee paid to the mortgage lender or broker. A point is equal to:

    • A.

      1% of the loan amount

    • B.

      0.10% of the loan amount

    • C.

      1% of the purchase price

    • D.

      1% of the money I have in my checking account

    Correct Answer
    A. 1% of the loan amount
    Explanation
    The correct answer is 1% of the loan amount. Did you know you can negotiate mortgage points? Get quotes from multiple lenders and negotiate the best rate, point, and fee combination.

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Quiz Review Timeline +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Mar 16, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Aug 01, 2013
    Quiz Created by
    Fullbeaker

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