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:

Market Rate

The current price or cost of goods, services, or commodities as determined by the market supply and demand.

Maturity

The date on which a financial obligation must be repaid in full or the point at which an investment reaches its full value.

Time Period

A specific duration for which financial or operational activities are measured, analyzed, and reported.

Lessee

An entity or individual that leases or rents property or equipment from another.