Mortgage Lending Terminology Quiz
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Questions and Answers

What does 'DTI' stand for?

  • Debt to Income (correct)
  • Deposit to Income
  • Document to Income
  • Duration to Insure

    • What is the significance of a rebate in mortgage lending?

  • It increases the total loan cost
  • It signifies a penalty
  • It can be used to cover closing costs (correct)
  • It is a reward for early repayment

    • What does a 'No-Cost Loan' typically involve?

  • No repayment required
  • No interest payments
  • Higher interest rates to cover loan costs (correct)
  • No documentation

    • What key information is typically found at the top or bottom of a lender's rate sheet?

    <p>Lender information (B)</p> Signup and view all the answers

    Why is the date issued on a rate sheet important?

    <p>Rates change daily and need to be current (A)</p> Signup and view all the answers

    What can price adjustments affect on a rate sheet?

    <p>The interest rate or its rebate (B)</p> Signup and view all the answers

    What does 'Min.FICO =>720' indicate on a rate sheet?

    <p>Minimum credit score requirement (D)</p> Signup and view all the answers

    Where are loan programs generally shown on a rate sheet?

    <p>In separate sections (C)</p> Signup and view all the answers

    What is off-sheet pricing used for in mortgage and loan terms?

    <p>To present rates that are not publicly available (D)</p> Signup and view all the answers

    What does an origination fee represent?

    <p>A percentage of the total loan amount charged by the lender (D)</p> Signup and view all the answers

    How are points expressed when they are less than a full point?

    <p>In eighths (D)</p> Signup and view all the answers

    What is a No-Cost Loan?

    <p>A loan where costs are covered by a higher interest rate (D)</p> Signup and view all the answers

    What does 'PTD' stand for?

    <p>Prior to Docs (A)</p> Signup and view all the answers

    What is the purpose of a rate lock?

    <p>To guarantee a specific interest rate for a set period (D)</p> Signup and view all the answers

    What does a 'lock' in mortgage lending refer to?

    <p>A fixed interest rate period (A)</p> Signup and view all the answers

    What does an origination fee represent?

    <p>A percentage of the total loan amount charged by the lender (B)</p> Signup and view all the answers

    What does 'PTD' stand for?

    <p>Prior to Docs (A)</p> Signup and view all the answers

    What is the purpose of a rate lock?

    <p>To guarantee a specific interest rate for a set period (D)</p> Signup and view all the answers

    What does 'ARM' stand for in mortgage terms?

    <p>Adjustable Rate Mortgage (D)</p> Signup and view all the answers

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