• Question #1 Your annual percentage rate (APR) is a yearly rate that reflects the true cost of your mortgage and includes your interest rate, points, mortgage insurance, and other fees.
  • Answer: True: Your annual percentage rate (APR) is a yearly rate that reflects the true cost of your mortgage and is inclusive of your interest rate, points, mortgage insurance, and other fees such as the origination and underwriting fees.
  • Question #2 After 5 years, the interest rate on 5/1 ARMs always increases.
  • Answer: False: After 5 years, the interest rate on a 5/1 ARM will adjust, but the rate may increase or decrease.
  • Questions #3 Only first-time homebuyers are eligible for FHA loans.
  • Answer: False: Federal Housing Administration (FHA) loans are available to everyone, not just first-time homebuyers.
  • Question #4 As a rule of thumb, you should always buy mortgage discount points when obtaining a mortgage.
  • Answer: False: Mortgage discounts points are prepaid fees paid to the lender to lower the interest rate on the loan.
  • Question #5 Mortgage rates for all mortgage types are set once per day and are released at 9:00 a.m. EDT
  • Answer: False: Mortgage rates for all types of mortgages can change frequently, sometimes dramatically, throughout the day.
  • Questions #6 All lenders are required by law to all charge the same fees for appraisals and credit reports.
  • Answer: False: There are no laws that require lenders to charge the same fees for services like appraisals or credit reports.
  • Question #7 If I am pre-qualified for a home loan the bank has committed to financing my loan.
  • Answer: False: A pre-qualification, sometimes also referred to as a pre-approval, is the first step to financing a home.
  • Question #8 Your annual income is considered an important factor in determining your interest rate.
  • Answer: False: Your annual income is not considered to be an important factor in determining your interest rate however it does play a crucial role in determining the amount of loan you can qualify for.
Mortgage Resources

Zillow is full of great information to help you get your home purchase moving. Check out the Mortgage Help Center for guidance and then shop for low mortgage rates on Zillow Mortgage Marketplace.