A Test On Mortgage! Trivia Knowledge Quiz
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Test on mortgage trivia knowledge. Most people who do not have enough cash to purchase their homes choose to do so by accessing mortgage finance. The interest rate of the loan varies depending on various factors such as a person’s credit score. Do take up the quiz below and get to see just how much you know about mortgage loan financing and accessibility to those that opt for it.
- 1.
I would like a loan to purchase a home, what is your interest rate?
- A.
10.4%
- B.
9.8%
- C.
9.4%
- D.
10.5%
Correct Answer
C. 9.4%Explanation
The correct answer is 9.4%. This is the interest rate offered by the lender for the loan to purchase a home. It is the lowest among the given options, making it the most favorable choice for the borrower. A lower interest rate means lower monthly payments and less overall interest paid over the life of the loan.Rate this question:
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- 2.
How much financing would I get for a piece of land with infrastructure?
- A.
50%
- B.
75%
- C.
90%
- D.
100%
Correct Answer
B. 75%Explanation
The correct answer is 75%. This suggests that if you have a piece of land with infrastructure, you would be able to secure financing for 75% of its value. This means that the lender would be willing to provide you with a loan or funding equivalent to 75% of the total worth of the land and its associated infrastructure.Rate this question:
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- 3.
What is the maximum financing would I get to purchase a house?
- A.
$50,000,000
- B.
85%
- C.
$100,000,000
- D.
90%
Correct Answer
D. 90%Explanation
The maximum financing one would get to purchase a house is 90%. This means that the lender is willing to provide a loan amount that covers 90% of the total cost of the house. The remaining 10% would need to be covered by the buyer as a down payment.Rate this question:
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- 4.
What is the amount of financing I could get for a piece of land in Clarendon, where there is no development?
- A.
50%
- B.
$1,000,000
- C.
75%
- D.
$2,000,000
Correct Answer
A. 50%Explanation
The correct answer is 50%. This suggests that the amount of financing that could be obtained for a piece of land in Clarendon, where there is no development, is 50% of the total value of the land. This means that if the land is worth $1,000,000, the financing amount would be $500,000.Rate this question:
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- 5.
I don't need a valuation report on my house to process a mortgage.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
A valuation report is typically required by lenders to assess the value of a property before approving a mortgage. This report helps them determine the loan amount they can offer based on the property's market value. Without a valuation report, it would be difficult for lenders to accurately assess the property's worth and make an informed decision regarding the mortgage. Therefore, it is not true that a valuation report is not needed for processing a mortgage.Rate this question:
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- 6.
I can get a home loan in U.S. currency.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The statement "I can get a home loan in U.S. currency" is true. In the United States, it is common for individuals to obtain home loans in U.S. currency. This means that the loan amount, interest rates, and repayment terms are all denominated in U.S. dollars. This allows borrowers to easily understand and manage their loan obligations without having to worry about currency exchange rates or fluctuations.Rate this question:
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- 7.
What can I use a JN Home Equity loan to do?
- A.
Refinancing a loan at BNS
- B.
Pay my daughter's school fee
- C.
Pay for my parent's hospital stay
- D.
All of the above
- E.
1 and 3
Correct Answer
D. All of the aboveExplanation
A JN Home Equity loan can be used for multiple purposes, including refinancing a loan at BNS, paying for a daughter's school fee, and paying for a parent's hospital stay. Therefore, the correct answer is "All of the above."Rate this question:
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- 8.
Which document is not needed to process my home loan?
- A.
Utility Bill
- B.
ID
- C.
TRN
- D.
Proof of Income
- E.
Valuation Report
- F.
Surveyor's Report
Correct Answer
A. Utility BillExplanation
A utility bill is not needed to process a home loan because it is not directly related to the financial aspect of the loan. A utility bill is typically used to verify a person's residential address, but it does not provide information about their income, creditworthiness, or the value of the property. Therefore, it is not necessary for the loan processing.Rate this question:
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- 9.
Late fees are calculated:
- A.
Daily
- B.
Weekly
- C.
Monthly
- D.
Fortnightly
Correct Answer
A. DailyExplanation
Late fees are calculated on a daily basis. This means that for each day that a payment is late, a certain amount of fees will be charged. This method allows for more accurate calculations and ensures that the fees reflect the actual number of days the payment is overdue. Other options such as weekly, monthly, or fortnightly would imply that the fees are charged based on a longer time period, which may not accurately reflect the extent of the delay.Rate this question:
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- 10.
I would like a Statement to Close on my account, where would I request this?
- A.
The Legal Department
- B.
Mortgage Services
- C.
Mortgage Centre
- D.
None of the above
Correct Answer
B. Mortgage ServicesExplanation
To request a Statement to Close on an account, one would need to contact Mortgage Services. This department is responsible for handling mortgage-related matters and would be the appropriate channel to request a statement for closing the account. The Legal Department may deal with legal matters but not specifically with account statements. The Mortgage Centre is not mentioned as an option, so it is not relevant to this question.Rate this question:
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- 11.
What kind of loan would I get if I wanted to get a solar heater for my home?
- A.
Home Improvement
- B.
Home Equity
- C.
Refinancing
- D.
JN Home Loan
Correct Answer
A. Home ImprovementExplanation
If someone wants to get a loan to install a solar heater in their home, they would most likely apply for a Home Improvement loan. This type of loan is specifically designed to fund renovations or improvements to a property, such as installing energy-efficient appliances or making eco-friendly upgrades. Since a solar heater falls under the category of home improvement, this would be the appropriate loan option.Rate this question:
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- 12.
Where on Phoenix would I go to see the interest rate on my loan?
- A.
Edit RIM
- B.
History
- C.
Display
- D.
Portfolio
Correct Answer
C. DisplayExplanation
To see the interest rate on your loan, you would go to the "Display" option on Phoenix. This option most likely provides a summary or detailed view of your loan information, including the interest rate. It allows you to view and access important details related to your loan, helping you stay informed about the terms and conditions.Rate this question:
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- 13.
If I wanted to get a mortgage, and the loans officer told me that the monthly payment is $50,000, and I am earning $100,000, would I be able to qualify for the loan?
- A.
Yes
- B.
No
Correct Answer
A. YesExplanation
Yes, you would be able to qualify for the loan because your monthly payment of $50,000 is only 50% of your monthly income of $100,000. Generally, lenders consider a debt-to-income ratio of 43% or lower to be acceptable for mortgage qualification, so in this case, your ratio is well below that threshold.Rate this question:
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- 14.
What is my mortgage payment comprised of?
- A.
Peril/Life Insurance
- B.
Interest
- C.
Principal
- D.
Interest and Principal
- E.
1,2 and 3
Correct Answer
E. 1,2 and 3Explanation
The mortgage payment is comprised of three components: peril/life insurance, interest, and principal. Peril/life insurance is included to protect the property from potential risks. The interest is the cost of borrowing the money from the lender, while the principal is the actual amount borrowed. Therefore, the correct answer is 1, 2, and 3, as all three components are included in the mortgage payment.Rate this question:
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- 15.
Who cannot take out a mortgage?
- A.
A registered company
- B.
A church
- C.
My 17 year old daughter who has her driver's license
- D.
Employees
Correct Answer
C. My 17 year old daughter who has her driver's licenseExplanation
A 17-year-old daughter who has her driver's license cannot take out a mortgage because she is a minor and does not have the legal capacity to enter into a binding contract such as a mortgage. Mortgage contracts typically require the borrower to be of legal age, usually 18 years or older. Additionally, minors are generally not eligible for mortgages as they may not have a stable income or credit history to qualify for a loan.Rate this question:
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- 16.
If I have an existing mortgage and my monthly payment of $37,500 is due on the 4th of every month; in June I forgot to make a payment, but at the end of July I paid $75,000. Would I have arrears?
- A.
Yes
- B.
No
Correct Answer
A. YesExplanation
Yes, you would have arrears. Arrears refer to unpaid or overdue payments. In this case, you missed the payment in June and only made a double payment in July. Therefore, you were behind on your payment for one month, resulting in arrears.Rate this question:
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Current Version
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Mar 22, 2023Quiz Edited by
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Jul 22, 2013Quiz Created by
Sanya_k29
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