1. Reading Rate Sheets Quiz.docx

Mortgage and Loan Pricing Quiz Question 1: What is typically found at the top or bottom of a lender's rate sheet? A) Customer reviews B) Lender information C) Loan application forms D) Government regulations Answer: B Question 2: What are included in lender's fees? A) Interest rates B) Loan amounts...

Mortgage and Loan Pricing Quiz Question 1: What is typically found at the top or bottom of a lender's rate sheet? A) Customer reviews B) Lender information C) Loan application forms D) Government regulations Answer: B Question 2: What are included in lender's fees? A) Interest rates B) Loan amounts C) Underwriting and Tax Service fees D) Customer service charges Answer: C Question 3: Why is the date issued on a rate sheet important? A) It shows the lender's founding date B) It indicates the borrower's birthday C) Rates change daily and need to be current D) It is required for legal purposes Answer: C Question 4: What is a "lock-in Rate Sheet" used for? A) To lock the lender's office at night B) To formally lock-in a customer's interest rate C) To lock the rate sheet in a secure location D) To lock out competing lenders Answer: B Question 5: Where are loan programs generally shown on a rate sheet? A) In the footer B) In separate sections C) On the back page D) In the header Answer: B Question 6: What can price adjustments affect on a rate sheet? A) The color of the rate sheet B) The font size C) The interest rate or its rebate D) The paper quality Answer: C Question 7: What does "Min. FICO =>720" indicate? A) Maximum loan amount B) Minimum credit score requirement C) Maximum interest rate D) Minimum yearly income Answer: B Question 8: What is off-sheet pricing? A) A discount for early payment B) A fixed pricing model C) Pricing not shown on the rate sheet D) A typo on the rate sheet Answer: C Question 9: What does an origination fee represent? A) A fixed interest rate B) A mandatory government tax C) A percentage of the total loan amount charged by the lender D) A rebate offered to the borrower Answer: C Question 10: How are points expressed when they are less than a full point? A) As percentages B) In eighths C) In full numbers D) As decimals Answer: B Question 11: What is a No-Cost Loan? A) A loan without any interest B) A loan that does not require repayment C) A loan where costs are covered by a higher interest rate D) A loan without any paperwork Answer: C Question 12: What does "PTD" stand for? A) Post to Deposit B) Prior to Docs C) Pre-Transaction Discussion D) Post-Trade Delivery Answer: B Question 13: What does "ARM" stand for in mortgage terms? A) Annual Rate Modification B) Automated Repayment Method C) Adjustable Rate Mortgage D) Approved Residential Mortgage Answer: C Question 14: What does a "lock" in mortgage lending refer to? A) A security feature B) A fixed interest rate period C) The time period to lock the rate D) A type of mortgage Answer: C Question 15: What is the purpose of a rate lock? A) To secure the property B) To finalize the loan documents C) To guarantee a specific interest rate for a set period D) To lock the borrower into a contract Answer: C Question 16: What does "CLTV" stand for? A) Combined Loan-to-Value B) Current Loan Transaction Value C) Credit Line Total Value D) Combined Loan-to-Value Answer: D Question 17: What is the significance of a rebate in mortgage lending? A) It increases the total loan cost B) It signifies a penalty C) It can be used to cover closing costs D) It is a reward for early repayment Answer: C Question 18: What does "DTI" stand for? A) Duration to Insure B) Deposit to Income C) Debt to Income D) Document to Income Answer: C Question 19: What does a "No-Cost Loan" typically involve? A) No documentation B) No interest payments C) Higher interest rates to cover loan costs D) No repayment required Answer: C Question 20: What does "LP" stand for in mortgage terminology? A) Loan Processor B) Legal Proceedings C) Loan Prospector D) Loan Prospector Answer: D