What is a Mortgage? - Definition & Purpose


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question 1 of 3

Which of the following is true concerning mortgages?

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1. Which of these is a common mortgage component?

2. Which of the following statements is true?

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About This Quiz & Worksheet

Mortgage documents are typically several pages long and contain many terms. This quiz/worksheet combo will help test your understanding of the purpose and elements of mortgages. You'll be tested on areas that include purpose of a mortgage, components of mortgages, and mortgage default.

Quiz & Worksheet Goals

These assessments will test you on the following aspects of mortgages:

  • Loan type
  • Components of a mortgage
  • Monthly payments
  • Banks seizing homes for non-payment

Skills Practiced

This quiz and worksheet allow students to test the following skills:

  • Interpreting information - verify that you can read information regarding mortgages and interpret it correctly
  • Defining key concepts - ensure that you can accurately define main phrases, such as collateral and escrow
  • Information recall - access the knowledge you've gained regarding the purpose of a mortgage
  • Knowledge application - use your knowledge to answer questions about components of mortgages

Additional Learning

To learn more about mortgages, review the accompanying lesson entitles What is a Mortgage: Definition & Purpose. This lesson covers the following objectives:

  • Definition of mortgage
  • Purpose of a mortgage
  • Components to a mortgage
  • Defaulting on mortgage terms