Closing Costs Quiz

1. What are closing costs?

The down payment on a home Fees and expenses paid at the end of a real estate transaction Monthly mortgage payments Property taxes

2. What is a loan origination fee?

Fee for processing the loan application Fee for appraising the property Fee for title insurance Fee for recording the deed

3. What is an appraisal fee?

Fee for inspecting the property Fee for determining the property's value Fee for title search Fee for credit report

4. What is title insurance?

Insurance that protects the lender and buyer from title defects Insurance that protects the home from damage Insurance that protects the buyer from fraud Insurance that replaces homeowner's insurance

5. What are discount points?

A discount on the home price Prepaid interest paid to lower the interest rate A reward for good credit A fee for paying off the loan early

6. What is a credit report fee?

Fee for checking your credit score Fee for obtaining the borrower's credit report Fee for fixing credit errors Fee for credit monitoring

7. What is a recording fee?

Fee for recording the loan documents with the county Fee for recording the deed Fee for recording the contract Fee for recording the inspection

8. How much are typical closing costs as a percentage of the loan amount?

1-2% 2-5% 5-10% 10-15%

9. What is a good faith estimate (GFE)?

An estimate of closing costs provided to the borrower An estimate of the home's value An estimate of the monthly payment An estimate of property taxes

10. Can closing costs be negotiated?

No, they are fixed by law Yes, some closing costs can be negotiated with the lender Only the appraisal fee Only title insurance

Quiz Results