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