1. What is equity?
Total value of a house.
The value of a house after any mortgage loans are subtracted.
Value of the furniture and other assets inside a house.

2. What is loan interest?
Reasons why a home buyer should get a loan.
Interest of a lender to grant a loan.
The sum paid to a lender for money borrowed.

3. How much is a point worth?
1 percent of the amount of the mortgage.
1,000 dollars.
Varies by the lender.

4. When do lenders require private mortgage insurance(PMI)?
If the yearly borrower's income is less then 30,000 dollars.
If the value of the loan is more than 100,000 dollars.
If the loan has a loan-to-value (LTV) percentage in excess of 80 percent.

5. What is a credit report?
A report of all credits obtained from high school.
A report of an individual's credit history.
An initial request to obtain a credit card.

6. What is a down payment?
Part of the purchase price of property that the buyer pays in cash and may not borrow.
Sum of money that the buyer pays the mortgage broker.
A fee charged by the title company for the closing costs.

7. What is housing expense ratio?
The percentage of gross monthly income that goes toward paying housing expenses.
Amount of monthly expenses for utilities.
The percentage of gross monthly income that goes toward paying mortgage interest.

8. What is a title?
Another word for mortgage application.
The name of the lender's company.
A legal document evidencing a person's right to or ownership of a property.

9. Who is the mortgagee?
The borrower in a mortgage agreement.
The lender in a mortgage agreement.
The mortgage broker.

10. When must a borrower pay a late charge?
When a payment is made 5 days after the due date.
When a payment is made 10 days after the due date.
When a payment is made a stated number of days (usually 15) after the due date.