Understanding Mortgages

Front

What does the acronym P-I-T-I stand for in the context of mortgages?

Back

Principal, Interest, Taxes, Insurance

Front

What is typically the largest and longest loan most people take out in their lives? Options: Personal loan, Car loan, Student loan, Home mortgage

Back

Home mortgage

Front

What is the primary purpose of private mortgage insurance (PMI)?

Back

To protect the lender in case of borrower default

Front

Which type of mortgage has an interest rate that never changes?

Back

Fixed Rate Mortgage

Front

What is the minimum down payment required for an FHA loan?

Back

3.5%

Front

Which type of loan is specifically for veterans and requires no down payment? Options: FHA Loan, VA Loan, USDA Loan, Conventional Loan

Back

VA Loan

Front

What does the '5' in a 5-1 ARM mortgage represent?

Back

The interest rate is fixed for 5 years

Front

What is the main benefit of a USDA loan?

Back

No down payment required

Front

What is the primary factor that affects the interest rate on a mortgage?

Back

The borrower's credit score

Front

What is the purpose of property taxes included in a mortgage payment?

Back

To fund schools and infrastructure