Review JeopardyObjective 2.03

Definitions Situations Money and

numbers100 100 100

200 200 200

300 300 300

400 400 400

500 500 500

Question 100

What is an origination fee?

Answer 100

The fee paid for the lender to process your loan

Question 200

What is an appraisal?

Answer 200

Determining the value of property

Question 300

What is a title search and what is its importance?

Answer 300

Making sure the seller actually owns the property it is trying to sell.

Question 400

What are the two types of inspections and what do they cover?

Answer 400

Termite, which checks for termites and water damage and puts the seller in responsibility, and general home checks for structural soundness, roofing, and electrical systems.

Question 500

What is an agreement of sale?

Answer 500

The seller agrees to sell and the buyer has agreed to buy on the same terms.

Question 100

If someone is in the military and doesn’t have much money for a down payment what loan/mortgage type would be best for them?

Answer 100

VA mortgage

Question 200

What kind of mortgage is for the people with low to moderate credit?

Answer 200

FHA mortgage

Question 300

What is the maximum amount people can afford on PURCHASING a house?

Answer 300

Two and a half times their annual income

Question 400

When based on your monthly income, how much can you afford on a mortgage?

Answer 400

28% of your gross monthly income

Question 500

If you have someone come out and inspect your foundation for water damage and/bugs, what kind of inspection is that?

Answer 500

Termite inspection

Question 100

If you sell your current home for $250,000 and you owe your mortgage company $122,456, what is the EQUITY of your home?

Answer 100

$127,544Equity is how much your house is worth

minus the amount you owe

Question 200

You have to make a 12% down payment on your home that costs $175,000. How much will you down payment be?

Answer 200

$21,000You take the cost of the house and

multiple it by the percent.$175,000 X 12% (.12)

Question 300

Your monthly income is $5,000. How much can you afford on monthly house payments?

Answer 300

$1,400You take you monthly income and multiple

it by 28%$5,000 X 28% (.28)

Question 400

You make $125,000 annually. What is the maximum amount you can afford to purchase a house?

Answer 400

$312,5000You can afford 2 and a half times your

annual income.2.5 X $125,000

Question 500

How much can you afford when buying a new home and lot to put the house on?

Answer 500

2 and a half times your total annual income