10 Questions
What does the abbreviation 'APR' stand for in the context of residential loans?
Annual Percentage Rate
Which term refers to borrowers or loans with poor credit ratings offered at rates well above the prime rate?
Subprime loans
What does 'LTV' stand for in the context of residential loans?
Loan-to-Value
What is the purpose of a 'credit score' in the loan application process?
To assess creditworthiness
What does the abbreviation 'PITI' represent in residential loan terminology?
Principal, Interest, Taxes, and Insurance
What is the purpose of 'points' in the context of residential loans?
To increase upfront yield on the loan
What does the term 'margin' represent in the context of residential loans?
A fee charged to increase the upfront yield on the loan
What does the abbreviation 'TRID' stand for in relation to residential loans?
TILA-RESPA Integrated Disclosure
What is the significance of 'discout points' in residential loans?
A fee to boost the upfront yield on the loan
How is the 'cap' related to residential loans?
An upper limit on interest rate changes
Test your knowledge of applying for a residential loan.
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