Different Types of Home Loans

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

Which of the following describes a home loan product that allows a person to borrow money in a way that is similar to a credit card?

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1. Which of the following is TRUE of an adjustable rate mortgage?

2. Which of the following is TRUE of a fixed rate mortgage?

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About This Quiz & Worksheet

This quiz/worksheet set will help you see how much you know about the different types of loans available to homeowners. You will be asked about several different loan types as well as characteristics of the lending market.

Quiz & Worksheet Goals

The following questions will help you test yourself on topics like:

  • What an adjustable rate mortgage is
  • What a fixed rate mortgage is
  • What home loan product is comparable to a credit card

Skills Practiced

  • Reading comprehension - ensure that you draw the most important information from the material, such as what type of loan requires periodic milestones to be met
  • Defining key concepts - ensure that you can accurately define main phrases, such as equity
  • Knowledge application - use your knowledge to answer questions about the characteristics of a fixed rate mortgage

Additional Learning

If you are still curious about how these types of loans work, read the lesson titled Different Types of Home Loans. It will help you understand things such as:

  • The typical length of most mortgages
  • How index rates affect adjustable rate loans
  • What collateral is in the context of home loans
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