If You Obtain an FHA or VA Loan You Will

question 24

Multiple Choice

If you obtain an FHA or VA loan you will make additional payments each month to cover your home insurance and property taxes that will be placed in an account called a(n)

• A) insurance account.
• B) appraisal account.
• C) escrow account.
• D) default prevention account.

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Definitions:

Journal

A book or electronic record where all financial transactions of a business are initially recorded, often before posting to ledgers.

Chronological Record

An organized account of events, transactions, or entries in the order they occurred over time.

Accounts Receivable

Payments yet to be received by a company from customers for goods or services already provided.

Notes Payable

Financial obligations represented by written promissory notes that specify the terms under which a borrower agrees to repay a lender.