Vocabulary
This is the amount of money you borrow from a lender to buy a home.
What is a mortgage loan?
This type of mortgage is backed by the Federal Housing Administration
What is FHA?
A buyer's monthly mortgage payment is $1,500, and their other monthly debt payments total $500. What are their total monthly debt payments?
What is $2000?
A buyer wants to know how much a home is advertised to cost. Which document or advertisement should they check?
What is the listing?
This is money a buyer pays upfront toward the purchase price of a home.
What is a down payment?
This stands for Annual Percentage Rate and includes the interest rate plus certain borrowing costs.
What is APR?
This type of mortgage benefit is available to eligible veterans and certain service members.
What is a VA loan?
A buyer earns $4,000 in gross monthly income and has $1,200 in monthly debt payments. What is their DTI?
What is 30%?
A renter moves out and the landlord checks for damage before deciding how much of the upfront deposit to return. What is that deposit called?
What is a security deposit?
This ratio compares a person's monthly debt payments with their gross monthly income.
What is DTI?
This type of mortgage generally keeps the interest rate the same throughout the loan term
What is a fixed-rate mortgage?
This insurance protects the lender against losses if a borrower defaults on certain FHA-backed mortgages.
What is MIP?
A homeowner owes $150,000 on a home worth $220,000. How much equity do they have?
What is $70,000?
This is a special account used to hold money for expenses such as property taxes and homeowners insurance.
What is escrow?
This is the value of a home minus the amount still owed on its mortgage
What is equity?
This type of mortgage has an interest rate that can change over time.
What is an ARM (adjustable-rate mortgage)?
Jasmine wants to buy a home in a qualifying rural area. Her household income falls within the program's income limits, she meets the lender's credit and repayment requirements, and she plans to use the home as her primary residence. She is not a veteran and wants to buy with little money down. Which loan program should she explore first?
What is USDA?
A home costs $200,000. The buyer makes a 10% down payment. How much is the down payment?
What is $20,000?
Maya finds a house plan online that measures 8 inches wide on paper. The actual house will be 32 feet wide. She wants to use the same ratio to calculate the real-life measurements of the other rooms. What would she use to convert the drawing's measurements to the actual home's measurements?
What is a scale factor?
Jordan buys a home and discovers that the roof is leaking and the kitchen floors are damaged. Jordan decides to repair the roof and replace the flooring to improve the home. What is Jordan doing to the home?
What is renovating?
A buyer compares two mortgages and wants to compare their annual borrowing costs, including certain fees. Which percentage should they look at?
What is APR?
Taylor is a first-time homebuyer who has a steady job but limited savings for a down payment. Taylor has a credit score of 620, is not a veteran, and wants to purchase a home as a primary residence. Taylor is willing to pay mortgage insurance if necessary. Which loan program may be a good option to explore?
What is an FHA loan?
A buyer earns $5,000 per month before taxes and pays $1,500 in monthly debt payments. What is their debt-to-income ratio (DTI)?
What is 30%?
After purchasing her first home, Jasmine learns that a kitchen fire could cause thousands of dollars in damage. She wants financial protection to help cover certain losses or damage to her home if a covered event occurs. What type of insurance should Jasmine consider to help protect her home against covered risks?
What is Homeowners insurance?
A homeowner owes $160,000 on a home worth $240,000. The difference between the home's value and the remaining mortgage balance represents what?
What is equity?