General Mortgage Knowledge Test Questions

Question 1

Answer 1

Principal Finance Charge

Question 2

Answer 2

100% insured by the government

Question 3

Answer 3

ARMs

Question 4

Answer 4

D

Question 5

Answer 5

option ARM

Question 6

Answer 6

Annual Percentage Rate

Question 7

Answer 7

non-conforming loan

Question 8

Answer 8

small creditor rural/underserved area

Question 9

Answer 9

an FHA loan

Question 10

Answer 10

most lending transactions other than reverse mortgages and open end loans

Question 11

Answer 11

reverse mortgage

Question 12

Answer 12

a purchase money mortgage

Question 13

Answer 13

HECM

Question 14

Answer 14

a loan with a balloon payment provision

Question 15

Answer 15

the amortization schedule

Question 16

Answer 16

a legal requirement under the ability to repay rule

Question 17

Answer 17

they are assumable

Question 18

Answer 18

insures loans

Question 19

Answer 19

rural areas

Question 20

Answer 20

option arm

Question 21

Answer 21

construction to permanent and standalone construction

Question 22

Answer 22

negative amortization

Question 23

Answer 23

funding fee

Question 24

Answer 24

conventional/conforming loans

Question 25

Answer 25

FHA loans

Question 26

Answer 26

HELOC

Question 27

Answer 27

subordinate lien

Question 28

Answer 28

nonconforming loan

Question 29

Answer 29

three years

Question 30

Answer 30

DTI of no more than 30%

Question 31

Answer 31

a fixed rate qualified mortgage that is not a higher priced mortgage

Question 32

Answer 32

index and margin

Question 33

Answer 33

a number, expressed as a percentage that represents a lenders operating costs and profit margin.

Question 34

Answer 34

jumbo loan

Question 35

Answer 35

up to the guaranteed amount on the loan