Mortgage Lending Terminology Quiz

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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?

Lender information Signup and view all the answers

Why is the date issued on a rate sheet important?

Rates change daily and need to be current Signup and view all the answers

What can price adjustments affect on a rate sheet?

The interest rate or its rebate Signup and view all the answers

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

Minimum credit score requirement Signup and view all the answers

Where are loan programs generally shown on a rate sheet?

In separate sections Signup and view all the answers

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

To present rates that are not publicly available Signup and view all the answers

What does an origination fee represent?

A percentage of the total loan amount charged by the lender Signup and view all the answers

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

In eighths Signup and view all the answers

What is a No-Cost Loan?

A loan where costs are covered by a higher interest rate Signup and view all the answers

What does 'PTD' stand for?

Prior to Docs Signup and view all the answers

What is the purpose of a rate lock?

To guarantee a specific interest rate for a set period Signup and view all the answers

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

A fixed interest rate period Signup and view all the answers

What does an origination fee represent?

A percentage of the total loan amount charged by the lender Signup and view all the answers

What does 'PTD' stand for?

Prior to Docs Signup and view all the answers

What is the purpose of a rate lock?

To guarantee a specific interest rate for a set period Signup and view all the answers

What does 'ARM' stand for in mortgage terms?

Adjustable Rate Mortgage Signup and view all the answers

Mortgage Lending Terminology Quiz

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Questions and Answers

What does 'DTI' stand for?

What is the significance of a rebate in mortgage lending?

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

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

Why is the date issued on a rate sheet important?

What can price adjustments affect on a rate sheet?

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

Where are loan programs generally shown on a rate sheet?

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

What does an origination fee represent?

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

What is a No-Cost Loan?

What does 'PTD' stand for?

What is the purpose of a rate lock?

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

What does an origination fee represent?

What does 'PTD' stand for?

What is the purpose of a rate lock?

What does 'ARM' stand for in mortgage terms?

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