5.2.11 Quiz: Mortgage terminology

What's the word?

If you're new to mortgages, many of the words used and the ideas behind them may not be familiar. You'll feel more confident if you know the basic language and how it's used. Test yourself by matching the words below with the right meaning.

Term Definition
a) The amount of the loan
b) The period of time it will take to pay off a mortgage in full
c) Payments that do not change even if the mortgage interest rate changes
d) The current market value of a home or property minus the amount remaining on the mortgage
e) A mortgage with an interest rate that does not change during the term
f) The amount of money you deposit when you first buy your home
g) A mortgage that you can prepay at any time during the term, without charge
h) Payments that may change as interest rates change
i) A mortgage with an interest rate that can change during the term
j) A mortgage with a variable interest rate that you can change to a fixed interest rate
k) A type of loan that allows the lender to take possession of secured property if you don't repay the loan on time
l) The amount you pay a lender for the use of the lender's money
m) The length of time your mortgage agreement will be in effect
n) A mortgage that you cannot prepay or change before the end of the term

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