Mortgages quiz

More questions about Mortgages

These visible examples show the question style. LearnClash turns the full topic into ranked duels and spaced repetition.

1. 1 Easy

   Who sets the interest rate on your mortgage?

   Answer: The lender

   Why: Lenders price fixed rates off longer-term market rates, so they can change even when the central bank holds its rate.

2. 2 Medium

   Which word means paying off a loan in regular installments?

   Answer: Amortization

   Why: Amortize shares its root with mortgage: Old French amortir meant 'to deaden or kill', from Latin mors, death.

3. 3 Hard

   Where do the funds for a new bank mortgage come from?

   Answer: Newly created money

   Why: It works in reverse too: as a mortgage is repaid, the deposits used to repay it vanish and that money is destroyed.

4. 4 Easy

   What is a lender seizing a home after missed payments called?

   Answer: Foreclosure

   Why: The seized home is often sold at auction, and any money left after all its debts and costs are paid goes back to the former owner.

5. 5 Medium

   Where does most of the first payment go on a 25-year 5% loan?

   Answer: Interest

   Why: On that loan the payments only become mostly principal after about 11 of the 25 years.

6. 6 Hard

   How many years could Japan's longest bubble-era mortgages run?

   Answer: 100 years

   Why: They were sold as multigeneration loans: when the borrower died, the children took over both the home and the payments.