How well do you know home buying terms?

Eight terms you’ll hear from lenders and agents. Pick the right meaning for each and see how fluent you are.

8 questions · about 2 minutes · no signup needed

Question 1 of 8What is escrow (for your monthly payment)?

An account the lender uses to pay your property taxes and insuranceA fee for the home inspectionThe interest on your loanA type of down payment

Question 2 of 8What does PMI protect?

You, if you lose your jobThe lender, if you stop payingThe home, against fireThe seller, if the deal falls through

Question 3 of 8Debt-to-income ratio compares…

Your savings to your debtsYour monthly debt payments to your monthly income before taxesYour home value to your loanYour rent to your income after taxes

Question 4 of 8APR is…

The same as the interest rateThe interest rate plus certain loan costs, as a yearly rateYour monthly paymentThe appraisal price

Question 5 of 8Earnest money is…

A deposit showing you’re serious, usually credited at closingA fee paid to your agentMoney the seller gives youYour lender’s application fee

Question 6 of 8A contingency is…

A backup offerA condition that must be met, or you can cancel without losing your depositA type of loanAn extra closing cost

Question 7 of 8Loan-to-value (LTV) is…

The loan amount divided by the home’s valueThe lender’s profitYour interest rateThe length of the loan

Question 8 of 8Mortgage points are…

Rewards from your credit cardUpfront fees that lower your interest rateYour credit scoreLate payment penalties

Your answers aren’t saved or sent anywhere except to calculate your score. For education only; it isn’t a credit check or a loan approval.

How it works

Pick an answer and you’ll see right away whether you got it, with a short explanation and a link to learn more. At the end you’ll get your score and can share it.