We know that the mere mention of the word 'mortgage' might induce a cold sweat -- or make you want to take a nice, long nap instead of taking this quiz. But before you dismiss the topic as too boring or complicated, remember that lack of education is the reason that so many people are caught up in this mortgage mess. So doesn't it make sense to educate yourself? And this easy little quiz is just the way to get your feet wet.
Question 1 of 20
What are the components of your monthly mortgage payment?
Question 2 of 20
What's one of the main problems with subprime mortgages?
Question 3 of 20
A credit score below this number makes you a subprime borrower.
Question 4 of 20
What state has the country's highest rate of subprime mortgages?
Question 5 of 20
What's the largest mortgage company in the country?
Question 6 of 20
If you make one extra payment a year on a 30-year fixed mortgage, by how much will it shorten the term of your loan?
Question 7 of 20
How many different terms (lengths) are available for a fixed-rate mortgage?
Question 8 of 20
What's the easiest term to qualify for: 15, 20 or 30 years?
Question 9 of 20
What does ARM stand for?
Question 10 of 20
If you get an ARM, your interest rate might increase up to __ percent.
Question 11 of 20
In a 2007 report, what did Countrywide find was the No. 1 reason for foreclosure?
Question 12 of 20
In 2008, the Federal Housing Administration reported that 900,000 homes were in foreclosure. How much of an increase was that from 2007?
Question 13 of 20
The conventional loan limit for federally backed (Fannie May and Freddie Mac) mortgages is $300,700. What are loans called that are over that limit?
Question 14 of 20
What's the debt-to-income ratio that most lenders require?
Question 15 of 20
OK, so what does that mean? What does the 28 mean?
Question 16 of 20
And what does the second number -- the 36 -- mean?
Question 17 of 20
When lenders are looking at your job history, they'd like you to have been at your current job for at least ____ years.
Question 18 of 20
What percentage of your total loan will you probably have to pay in closing costs?
Question 19 of 20
When did mortgages, as they now work, come into being?
Question 20 of 20