20 Questions
What would be the monthly payment for principal and interest on a $500,000 loan with a fixed 6% interest rate?
$2,997.75
What does the Annual Percentage Rate (APR) include?
Interest and fees for a comprehensive yearly cost view
How are closing costs categorized?
Into Recurring and Non-Recurring costs
What is the main purpose of the Mortgage Loan Disclosure Statement (MLDS)?
To offer borrowers detailed loan and closing cost information
Why is the Annual Percentage Rate (APR) standardized as a yearly percentage?
To facilitate comparison across loans or investments
What is the purpose of an impound account mentioned in the text?
To manage pre-paid funds for property taxes and insurance
What is the purpose of prorated payments calculated at closing?
To adjust costs for the time period up until the next due date
What is the primary role of a Mortgage Banker?
Handling the application, underwriting, approval, and closing processes
What is the main purpose of APR?
To provide a consistent basis for comparing financial products
What type of fees are included in APR?
Yearly interest, annual fees, origination fees, and closing costs
What is the purpose of the HUD-I APR Table?
To display excluded items from APR
What is the primary role of a Mortgage Broker?
Works as an intermediary, finding the best lender for the borrower's situation.
What is the role of a Mortgage Banker in the loan process?
They handle the application, underwriting, approval, and closing.
What is the primary function of a Mortgage Loan Disclosure Statement (MLDS)?
To provide a detailed breakdown of mortgage loan costs.
What does APR stand for?
Annual Percentage Rate
What are Non-Recurring Closing Costs (NRCCs)?
One-time payments made during the settlement
What is an impound account used for?
Managing pre-paid funds for property taxes and insurance
Which of the following is NOT a type of closing cost?
Annual Percentage Rate (APR)
When is mortgage insurance typically required?
If the down payment is less than 20%
What does Title Insurance primarily provide protection against?
Title defects or legal claims to the property
Learn about the mortgage process, including the Annual Percentage Rate (APR), closing costs, and Mortgage Loan Disclosure Statement (MLDS) in this overview. Understand how APR covers the total yearly loan cost, the HUD-I APR Table, and the categorization of closing costs.
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