Mortgage Lending Terms Quiz
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Questions and Answers

What does the acronym 'DTI' stand for in mortgage lending?

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

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

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

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

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

    • In mortgage terminology, what does 'LP' stand for?

    <p>Loan Prospector</p> Signup and view all the answers

    Which term refers to the calculation of the sum of all debts divided by gross monthly income in mortgage lending?

    <p>Debt to Income Ratio</p> Signup and view all the answers

    What is the main feature of a 'No-Cost Loan' in mortgage financing?

    <p>No up-front fees required</p> Signup and view all the answers

    Which term relates to the proportion of the loan amount to the total appraised value of a property in mortgage terms?

    <p>'Combined Loan-to-Value'</p> Signup and view all the answers

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

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

    What is a 'lock-in Rate Sheet' used for?

    <p>To formally lock-in a customer's interest rate</p> Signup and view all the answers

    Where are loan programs generally shown on a rate sheet?

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

    What can price adjustments affect on a rate sheet?

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

    'Min.FICO =>720' indicates what on a rate sheet?

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

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

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

    What does "PTD" stand for?

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

    What does "ARM" stand for in mortgage terms?

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

    What does "CLTV" stand for?

    <p>Cumulative Loan-to-Value Ratio</p> Signup and view all the answers

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