10. Vocabulary - Mortgage-related concepts and terminology Are all mortgage loans alike? In short, the answer is no! Mortgage loans vary with the preferences of the individual lender and the borrower. In general, mortgage loans can be differentiated according to their terms of payment, their down payment requirements, and whether they are insured or guaranteed. Mortgage loans, or loans that use real property as collateral, are made by commercial banks, thrift institutions, and mortgage bankers. In addition to these traditional sources, mortgage brokers also solicit borrowers and originate a large volume of these loans. Brokers often place their loans with these traditional mortgage lenders as well as with Which of the following statements accurately describe the similarities and differences between mortgage bankers and mortgage brokers? Check all that apply. Many mortgage bankers ultimately sell the mortgages that they create. Although mortgage brokers often appear to work on behalf of their borrowing customers, they are ultimately paid by the mortgage lender. Mortgage brokers lend their own money to borrowers, while mortgage bankers find borrowers for interested lenders as well as lenders for interested borrowers. Select the term associated with mortgage loans that corresponds to each of the given descriptions. (Note: These are not necessarily complete definitions, but there is only one possible answer for each description.) Description This loan guarantee is offered by a department of the federal government to lenders who make qualified loans to eligible veterans of the U.S. Armed Forces and their surviving spouses. This mortgage is characterized by a constant interest rate and constant monthly payments over the life of the loan. This type of mortgage typically requires a down payment of 20% of the value of the mortgaged property. This mortgage provides for two interest rates: one that is charged for the first five to seven years and a higher rate that is charged during the remaining term of the loan. This mortgage allows a borrower to convert from an adjustable-rate loan to a fixed-rate loan during a prespecified time period. Term