Module 1: The Mortgage Story

A Purchase is when a person(s) buys a new or existing property.

• True

• False

A Refinance is to pay off a new loan with an old loan.

• True

• False

All of the following are types of refinance EXCEPT?

• Rate and Term Refinance

• Cash-Out Refinance 

• Streamline Refinance 

• Cash-In Refinance

A mortgage is:

• a loan to buy real property or real estate.

• a loan to buy a car.

• a loan to give a bank.

To buy a new property is called a:

• • Gift.

• • an Estate.

• • Purchase.

To find out if you are qualified for a mortgage loan prior to purchase.

• Prequalification

• Mortgage

• Contract

Changes the interest rate, the term, or both the rate and the term.

• Rate and Term Refinance

• Cash-Out Refinance

• Streamline Refinance

A fixed-rate mortgage charges an interest that remains the same throughout the life of the loan. It protects the borrower from sudden increases in interest rates.

• True

• False

An fixed-rate mortgage (also known as ARM or Variable Rate Mortgage) is a loan where the interest rate may change periodically. ARMs also come with caps which limits the amount a rate can adjust during each adjustment. 

• True

• False

This agreement commits the lender to providing a guaranteed interest rate for a specific period of time.

• Rate Lock

• Cash-out Refinance

• Fixed Rate Mortgage