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Chapter 14 Practice Questions

Chapter 14: Types of mortgages. Practice Florida real estate questions and review the explanation for each answer.

55 practice questions

  1. Chapter 14 Who typically writes conventional loans?
  2. Chapter 14 Compared to FHA and VA loans, conventional loans generally require:
  3. Chapter 14 When is a borrower required to pay Private Mortgage Insurance (PMI) on a conventional loan?
  4. Chapter 14 Why are fixed-rate conventional mortgage loans generally NOT assumable?
  5. Chapter 14 What are the recommended maximum qualifying ratios for a conventional mortgage?
  6. Chapter 14 In a fixed-rate amortized mortgage, how do the principal and interest portions of the payment change over time?
  7. Chapter 14 Fixed-rate amortized mortgages are also known as:
  8. Chapter 14 A "Purchase Money Mortgage" refers to:
  9. Chapter 14 A loan with an interest rate that changes at preset intervals based on a recognized index is called a(n):
  10. Chapter 14 In an ARM, the percentage added to the index to cover the lender’s costs and profit is called the:
  11. Chapter 14 What is the primary function of the Federal Housing Administration (FHA)?
  12. Chapter 14 Which two premiums do borrowers pay on FHA loans?
  13. Chapter 14 What is the minimum down payment required for an FHA loan?
  14. Chapter 14 The FHA Section 203(b) program insures:
  15. Chapter 14 Does the Department of Veterans Affairs (VA) insure loans?
  16. Chapter 14 Does the VA have the power to make direct loans?
  17. Chapter 14 Who provides the funds for VA loans?
  18. Chapter 14 A veteran’s "entitlement" refers to:
  19. Chapter 14 Which document states the amount of entitlement available to a veteran borrower?
  20. Chapter 14 What is the down payment requirement for a VA loan if the borrower qualifies?
  21. Chapter 14 What fee does the VA charge to help defray the cost of foreclosures?
  22. Chapter 14 Are VA loans assumable?
  23. Chapter 14 In a partially amortized mortgage, the regular payments are:
  24. Chapter 14 A single large final payment made at the maturity of a partially amortized loan is called a:
  25. Chapter 14 What is a "primary market"?
  26. Chapter 14 The primary mortgage market consists of:
  27. Chapter 14 Do Mortgage Loan Originators (MLOs) make loans?
  28. Chapter 14 What is the role of an MLO?
  29. Chapter 14 Who typically employs licensed loan originators?
  30. Chapter 14 Which statement is true regarding mortgage brokers?