Financing Your Purchase Quiz You've done your research and are well on your way to becoming an informed homebuyer. Now it’s time to test your knowledge. You may even learn something new. 1 How much of a down payment do you need to purchase a home? 20 percent 5 percent 3 percent It depends question 1/5 Next 2 What are the four primary factors – often referred to as the "4 Cs" – that lenders use to determine a person's creditworthiness? Credit, capital, collateral, capacity Credit, capital, cosigner, collateral Closing costs, credit, collateral, capacity None of the above question 2/5 Next 3 When will the interest rate adjust on a 3/1 adjustable-rate mortgage?A 3/1 ARM has a fixed interest rate for the first three years. After three years, the rate can change once every year for the remaining life of the loan. The same principle applies for a Every three months during the first year of the loan When you've paid down 3% of your loan After three years, the rate can change once every year for the life of the loan Your rate will not adjust unless interest rates rise 3% question 3/5 Next 4 When buying a home, when are you required to have private mortgage insurance? It's mandatory for all homebuyers It's optional during the first year of a mortgage When your down payment on the home is less than 20% It's mandatory if the home you’re purchasing is in a flood zone question 4/5 Next 5 Which mortgage type provides stable payments over the longest period of time? Adjustable-rate Fixed-rate Balloon Interest-only question 5/5 View Results ★ You scored 0 out of 5. Great job! It looks like you’re pretty clear on what it takes to finance a home. Keep up the good work! You’re on the right track. Consider learning more about how the financing process works. Knowledge is power! Retake quiz
