Mortgage terminology quiz

You can do this quiz online or print it on paper. It tests some of the terms covered in the glossary of Mortgage terminology in our Vocabulary section.

1. A mortgage from a bank can be used to buy

a car
a business
a house or apartment
a) a car b) a business c) a house or apartment

2. The length of time a borrower has to pay off their mortgage is called the

mortgage term
mortgage equity
mortgage statement
a) mortgage term b) mortgage equity c) mortgage statement

3. If you don't keep up with your mortgage payments, the lender can take back your property. What is this called?

forbearance
foreclosure
disclosure
a) forbearance b) foreclosure c) disclosure

4. Banks and other mortgage providers make money by charging

property taxes
interest
title insurance
a) property taxes b) interest c) title insurance

5. The amount paid as interest on a loan is _______ the total amount borrowed.

a percentage of
equal to
subtracted from
a) a percentage of b) equal to c) subtracted from

6. The interest rate a borrower pays can change if they have

a mortgage statement
a fixed-rate mortgage
an adjustable-rate mortgage
a) a mortgage statement b) a fixed-rate mortgage c) an adjustable-rate mortgage

7. In most mortgage agreements, the mortgage term is

2 to 3 years
20 to 30 years
60 to 70 years
a) 2 to 3 years b) 20 to 30 years c) 60 to 70 years

8. Mortgage lenders usually require borrowers to make _______ on the property before lending them the rest of the purchase price.

a down payment
seller concessions
closing costs
a) a down payment b) seller concessions c) closing costs

9. If you don't earn enough to cover your mortgage payments, you can apply for

a loan estimate
a balloon loan
a loan modification
a) a loan estimate b) a balloon loan c) a loan modification

10. If your lender agrees to lower your monthly payments, or postpone them for a while, what have they granted you?

foreclosure
appraisal
forbearance
a) foreclosure b) appraisal c) forbearance

Your score is:

Correct answers:

Contributor: Matt Errey. Matt is the author of several books including 1000 Phrasal Verbs in Context and Common English Idioms for learners, and Matt's ESL Games and Quizzes for teachers.