If a mortgaged property has a _______ on it, that property cannot be sold (except by the lender) until the mortgage is cleared.

A. collateral B. lien C. writ of habeas corpus D. down payment E. writ of certiorari

3. A borrower on a conventional mortgage makes a 25% down payment. With that amount of down payment, she will be required to obtain ________.

A. FHA insurance B. VA insurance C. private mortgage insurance D. GNMA payment guarantees E. none of the above

4. A mortgage that requires interest-only payments for a five-year period, then full payment of all principal, is a(n)

A. chattel mortgage. B. balloon payment mortgage. C. variable-rate mortgage. D. open-ended mortgage bond. E. fixed-rate mortgage.

5. All else being equal, monthly payments are ________ on a 15-year fixed-rate mortgage (FRM) than on a 30-year FRM, and ________ is paid on a 15-year FRM than on a 30-year FRM.

A. lower; less interest B. lower; less principal C. higher; less interest D. higher; more principal E. higher; more interest