Question

Question 1: What would you pay to a bank to lower your interest rate on your mortgage loan?

A: points

B: down payment   

C: interest origination fee

D: insurance for your house

Question 2: A disadvantage of whole life insurance is

A: lower yields than comparable investments

B: it provides coverage for specific time in your life

C: premium increases over time

D: must be renewed every year

Question 3: A___________ allows a homeowner access their equity without selling their home. These types of mortgages are typically found to be popular with the elderly.

A: graduated mortgage

B: geriatric mortgage

C: reverse mortgage

D: original loan

Question 4: If you hit a deer with your car, the damage to your car is covered under your

A: collision policy

B: comprehensive policy

C: bodily injury liability

D: property damage liability

Question 5: When talking to you insurance agent, he or she mentions a homeowners insurance that is used to cover a your condominium. What type of insurance policy are they referring to?

A: HO-2

B: HO-3

C: HO-6

D: HO-8

Answer 1

1. A. Points

Mortgage points or discount points are fees directly paid to the bank for a reduced interest rate.

2. A. Lower yields than comparable investments.

The investment choices are made by the life insurance company. Plus the fees taken out of the premium are extremely high.

3. C. Reverse mortgage.

4. B. Comprehensive policy.

5. C. HO-6.