Quiz 4 - Mortgage

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1. For most mortgages, what day is the payment due?:

a. 1st
b. 10th
c. 15th

2. The different components of a mortgage payment are referred to as:

a. PTIP
b. PITI
c. PTRI

3. For most mortgages, early payments consist primarily of:

a. Principal
b. Interest
c. Homeowners insurance

4. If you send your mortgage payment via mail, it must be received, not postmarked, by the due date to be on time.

a. True
b. False

5. Homeowners are more likely to get their mortgage payment to the lender or servicer on time by using an automatic withdrawal to make the payments rather than by using the mail to send payments.

a. True
b. False

6. If you cannot pay your mortgage, it is best to call your lender:

a. Before you miss any of your payments
b. After you have missed three   payments
c. Never

7. An effective action that homeowners can take to prevent falling behind on their mortgage payments is:

a.   Consider a separate checking account
b. Buy mortgage protection   insurance.
c. Run up credit card debt.

8. Selling your house for less than the amount owed on your mortgage is called a(n):

a. Upside down sale
b. Deficit sale
c. Short sale

9. What is a deed in lieu of foreclosure?

a. You give your home back to your lender
b. You sell your home and the   buyer takes over your mortgage
c. Your lender gives you lower   payments in exchange for a percentage of your home’s equity when it is sold

Correct answers: 1.a, 2.b, 3.b, 4.a, 5.a, 6.a, 7.a, 8.c, 9.a