1. Who will likely pay more in interest on a mortgage, John with a FICO score of 800 or Jerry with a FICO score of 350?
A. John
B. Jerry
2. Which of the following is a reason that mortgages are well suited to be purchased via the web?
A. This is a financial product—nothing really needs to be delivered
B. Online lenders generally charge more than traditional banks.
C. Customers build up loyalty to a particular provider in their purchasing of mortgages.
D. Mortgages are customized per individual.
3. Why are most mortgages immediately sold by the institutions that make the loan?
A- It is required by law.
B- Most loans are too risky to keep on the books.
C - It frees up cash to originate another loan.
D -Most mortgages are implemented by savings and loan banks and they do not service loans.
4. Which of the following is a factor that determines the interest rate that you will pay on a mortgage?
A - The length of the loan.
B - The amount of points paid up front.
C - The FICO score of the borrower.
D - The level of market interest rates.
E -All of the above
5. Mortgages do not have a secondary market
A. True
B. False