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Quiz about The US Mortgage Meltdown what to do now

The US Mortgage Meltdown, what to do now? Quiz

So you want a mortgage loan in the good old USA! This quiz will lead you down a path to knowledge.

A multiple-choice quiz by rbull1435. Estimated time: 4 mins.

Author
rbull1435

Time
4 mins

Type
Multiple Choice

Quiz #
314,657

Updated
Jul 23 22

# Qns
10

Difficulty
Average

Avg Score
7 / 10

Plays
390

One at a Time - Single Page - Timed Game

Question 1 of 10

1. One of the first things you will do to get qualified for a mortgage is fill out an application. What is the name/number of this document? Hint

1003

1492

1099

1040

NEXT>

Question 2 of 10

2. Okay the loan officer has taken your mortgage application and he/she has just pulled your credit report he/she says your credit scores are 745, 798 and 699. Which of the answers below are NOT a credit reporting agency? Hint

Fannie Mae

Experian

Equifax

Trans Union

NEXT>

Question 3 of 10

3. The mortgage loan officer has questions regarding your income and debt. He says your DR% is within guidelines. What does DR% stand for? Hint

due responsability percentage

duplicate reasonable percentage

direct republic percentage

debt ratio percentage

NEXT>

Question 4 of 10

4. The mortgage loan officer is going on some web site. He said he is trying to get your DU approval. What does DU stand for? Hint

district university

doomed urgency

desktop underwriter

direct underwriting

NEXT>

Question 5 of 10

5. Good news! FHA has approved your mortgage application. What does FHA stand for? Hint

Final Hope for Advice

Federal Home Advice

Federal Housing Administration

Fiscal Hearing Approval

NEXT>

Question 6 of 10

6. The mortgage loan officer wants to send you a GFE for your approval. What does GFE stand for? Hint

Going For Everything

God Found you Eligible

Got the Facts Estimate

Good Faith Estimate

NEXT>

Question 7 of 10

7. You are going over your mortgage disclosure documents with the family when you notice that on one of the documents the loan officer sent you there are two different interest rates listed. One of them is name APR. What does APR stand for? Hint

Applied Percentage Rate

Accepted Percentage Rate

Annualized Percentage Rate

Annual Percentage Rate

NEXT>

Question 8 of 10

8. You are refinancing the mortgage on your primary residence. As you are getting cash out how long after closing do you have to wait to get your check? Hint

2 weeks

5 days

3 days

until the bank buys the loan

NEXT>

Question 9 of 10

9. You notice in the closing paperwork your first mortgage payment is due on the 1st of every month. How many days grace period do you have before you have to pay a late fee? Hint

15 days

29 days

5 days

1 day

NEXT>

Question 10 of 10

10. You want to pay off your new mortgage faster than the original 30 year term. Can you really pay off your mortgage earlier by paying 1/2 of your monthly mortgage payment every two weeks? Hint

yes you can but it only pays the loan off one month earlier

you can if you have a bank loan

yes

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Quiz Answer Key and Fun Facts

1. One of the first things you will do to get qualified for a mortgage is fill out an application. What is the name/number of this document?

Answer: 1003

All Government forms have numbers associated with them. Make sure you fill the 1003 out completely and make sure all information on it is correct.

Answer: Fannie Mae

Fannie Mae is not a credit reporting agency. They are now a government owned corporation.

3. The mortgage loan officer has questions regarding your income and debt. He says your DR% is within guidelines. What does DR% stand for?

Answer: debt ratio percentage

Standard rules for maximum debt to income ratio is 36% for your housing and 41% for all debt combined. But you may get approval for a higher DR% based on your credit and other factors.

4. The mortgage loan officer is going on some web site. He said he is trying to get your DU approval. What does DU stand for?

Answer: desktop underwriter

Desktop underwriter was developed by Fannie Mae to assist mortgage originators in approving mortgage applications on line.

5. Good news! FHA has approved your mortgage application. What does FHA stand for?

Answer: Federal Housing Administration

FHA or the Federal Housing Administration, is a branch of government under the office of Housing and Urban Development.

6. The mortgage loan officer wants to send you a GFE for your approval. What does GFE stand for?

Answer: Good Faith Estimate

The GFE or Good Faith Estimate might be the most important document you receive from a lender. Read carefully and ask lots of questions.

Answer: Annual Percentage Rate

APR or Annual Percentage Rate is the combined cost of the money you are borrowing and the calculation to come up with this number is complicated. However it can be useful in comparison shopping between lenders!

8. You are refinancing the mortgage on your primary residence. As you are getting cash out how long after closing do you have to wait to get your check?

Answer: 3 days

For all refinance mortgages on your primary residence you have a 3 day cooling off period before your loan is final. For purchase and investment properties there is no cooling off period.

9. You notice in the closing paperwork your first mortgage payment is due on the 1st of every month. How many days grace period do you have before you have to pay a late fee?

Answer: 15 days

This can vary from lender to lender but 99% of the time it is 15 days.

10. You want to pay off your new mortgage faster than the original 30 year term. Can you really pay off your mortgage earlier by paying 1/2 of your monthly mortgage payment every two weeks?

Answer: yes

Sure can! But you need to ask your lender if they will accept payments in this way before you start to do it.

Source: Author rbull1435

This quiz was reviewed by FunTrivia editor Bruyere before going online.
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