Mortgage Mentor

1. Which parts of a monthly housing payment can increase after closing?

Payment

Select all that apply.

2. What usually happens if your escrow account runs a shortage?

Payment

This commonly surprises buyers in year 1–2.

Nothing — the lender absorbs the differenceYou pay a one-time catch-up paymentYour monthly payment increases (sometimes with a catch-up)You must refinance to fix it

3. Which of the following can be true about how mortgage insurance (PMI/MIP) ends, depending on loan type and policy?

Loan

Select all that apply. This is about what’s possible across common loan types.

It can end automatically at a certain equity / LTV threshold (based on the loan’s rules)It can require you to request cancellation and meet conditions (e.g., equity + payment history)Refinancing can remove it (by replacing the loan with one that doesn’t require MI)For some FHA-style loans, mortgage insurance can effectively last for the life of the loanIt always disappears automatically as soon as you reach 20% equity

Select all that apply.

4. When does refinancing usually make financial sense?

Loan

Pick the best answer.

When you expect to keep the loan long enough to pass the break-even point (refi costs ÷ monthly savings)Any time rates drop, even slightlyOnce you’ve owned the home for at least 2 yearsWhenever you can roll closing costs into the new loan

5. Which issues can be required to be fixed before closing, depending on loan type (e.g. FHA / VA)?

Loan

Select all that apply. Focus on safety, habitability, and basic functionality.

Peeling or chipping paint (especially on older homes)Active roof leaks or severely damaged roofingExposed wiring or unsafe electrical conditionsNon-functioning plumbing or water leaksMissing handrails or fall hazardsOutdated finishes or cosmetic wear

Select all that apply.

6. Roughly how much does it cost to replace an asphalt shingle roof on a ~1,500 sq ft house?

Ownership

$3k–$6k$6k–$9k$9k–$16kIt’s usually fully covered by insurance

7. Roughly how much does a professional interior repaint cost for ~1,800 sq ft of living space?

Ownership

$3k–$7k$500–$1,000$10k–$15kMostly materials; labor is minimal

8. What’s a realistic cost range to replace ~1,000 sq ft of flooring with vinyl/LVP (materials + install)?

Ownership

$2k–$4k$4k–$6k$15k+$6k–$12k

9. What is a special assessment?

HOA

A fine for breaking HOA rulesA one-time charge to cover unexpected or underfunded costsA government-imposed property taxAn optional HOA service upgrade

10. Why can HOA dues increase even when nothing visibly changes?

HOA

Select all that apply. Think about costs, reserves, and scope of responsibility.

Insurance premiums for the community increasedReserve funding was adjusted after a study or auditThe HOA expanded what it is responsible for (e.g., added roofs, pools, roads, landscaping)If amenities didn’t change, dues should only rise with inflationVendor or utility contracts became more expensive or were renegotiatedPreviously deferred maintenance started to be funded properly

Select all that apply.

11. What actually determines how long you need to stay in a home for buying to make financial sense?

Timeline

A fixed number of years (e.g., 5–7)Future home price appreciationWhen your ownership costs break even with renting and selling costsMortgage interest rates at the time you buy

12. What actually determines whether buying beats renting in a given situation?

Timeline

Think in terms of how people who model this decision actually evaluate it.

Comparing one factor like interest rate or purchase priceComparing today’s rent to today’s mortgage paymentModeling cash flows over time (rent growth, ownership costs, and a break-even point)Following a general rule of thumb (e.g., 5–7 years)

13. What does opportunity cost mean for your down payment in practical terms?

Timeline

Money tied up in a down payment can’t be used for other investments or goalsYou lose the money permanently if home prices fallYou pay extra interest because the loan is smallerYou owe additional taxes on the down payment amount

Click “See results” to highlight correct answers and surface what’s worth rechecking. You don’t need to answer everything.

Buyer Readiness Exam

1. Which parts of a monthly housing payment can increase after closing?

2. What usually happens if your escrow account runs a shortage?

3. Which of the following can be true about how mortgage insurance (PMI/MIP) ends, depending on loan type and policy?

4. When does refinancing usually make financial sense?

5. Which issues can be required to be fixed before closing, depending on loan type (e.g. FHA / VA)?

6. Roughly how much does it cost to replace an asphalt shingle roof on a ~1,500 sq ft house?

7. Roughly how much does a professional interior repaint cost for ~1,800 sq ft of living space?

8. What’s a realistic cost range to replace ~1,000 sq ft of flooring with vinyl/LVP (materials + install)?

9. What is a special assessment?

10. Why can HOA dues increase even when nothing visibly changes?

11. What actually determines how long you need to stay in a home for buying to make financial sense?

12. What actually determines whether buying beats renting in a given situation?

13. What does opportunity cost mean for your down payment in practical terms?