Homebuyers do not "apply directly" to the Federal Housing Administration (FHA) for a mortgage loan. The FHA "insures" mortgages, but does not actually "fund" them.


These are questions that the above text answers:

1. Who do homebuyers apply to for a mortgage loan?
2. What does the Federal Housing Administration (FHA) do with regards to mortgages?
3. Does the FHA directly fund mortgage loans?
4. What role does the FHA play in the mortgage process?
5. Can homebuyers apply directly to the FHA for a mortgage loan?
6. What does it mean for the FHA to insure mortgages?
7. Who is responsible for funding mortgage loans?
8. What is the relationship between the FHA and mortgage loans?
9. How does the FHA assist homebuyers in obtaining a mortgage loan?

The Federal Reserve (the "Fed") does not affect the interest rate on "government-insured mortgages" as part of its monetary policy. This type of loan is offered by lenders, and the interest rate is decided between the lender and the borrower.


These are questions that the above text answers:

1. What type of mortgages does the Federal Reserve not affect the interest rates on?
2. Who decides the interest rate on government-insured mortgages?
3. What is the role of the Federal Reserve in determining interest rates on government-insured mortgages?
4. What is the relationship between the Federal Reserve and adjustable rate mortgages (ARMs)?
5. What is the difference between government-insured mortgages and other types of mortgages?
6. Who offers government-insured mortgages?
7. How are interest rates determined for government-insured mortgages?
8. Can the interest rate on a government-insured mortgage change over time?
9. Are government-insured mortgages affected by the Fed's monetary policy?
10. What factors influence the interest rate on government-insured mortgages?

A "real estate mortgage" is a loan that is "secured" by a property. This means that the person owning the property (the "mortgagor") must sign a "promissory note" and a "mortgage" in order for the loan to be approved.


These are questions that the above text answers:

1. What is a real estate mortgage?
2. How is a real estate mortgage secured?
3. What documents must the mortgagor sign for a loan to be approved?
4. What is a promissory note?
5. Who is responsible for signing the promissory note and mortgage?
6. What is the purpose of securing a real estate mortgage?
7. What does it mean for a loan to be "secured" by a property?
8. What is the role of the mortgagor in the loan approval process?
9. What are the basics of securing a real estate mortgage?

Lenders generally try to avoid having a lot of "subprime loans" in their portfolio, since these types of loans are more likely to end in the borrower not being able to pay back the money. To balance this risk, lenders will ask for a higher return when they think the loan is more risky. This is called "high risk yield".


These are questions that the above text answers:

1. What is the term used to describe loans that are more likely to result in the borrower being unable to repay the money?
3. What is the term used to describe the higher return lenders ask for when they perceive a loan to be more risky?
4. Why do lenders try to avoid having a lot of subprime loans in their portfolio?
6. What is the potential consequence of a borrower being unable to pay back a subprime loan?
7. How do lenders determine if a loan is more risky?
8. What is the term used to describe loans with a higher risk of default?
9. What is the potential risk for lenders when they have a lot of subprime loans in their portfolio?
10. How do lenders mitigate the risk associated with subprime loans?

When the Fed increases the interest rate it charges to member banks, those banks "raise the interest rate" they charge their customers. This "decreases the amount of money" that is available for people to spend.


These are questions that the above text answers:

1. What happens when the Federal Reserve increases the interest rate it charges to member banks?
2. How do banks respond when the Federal Reserve raises the interest rate?
3. What effect does an increase in the interest rate have on the amount of money available for people to spend?
4. What is the relationship between the Federal Reserve's interest rate and the interest rate charged by member banks?
5. How does an increase in the interest rate impact people's ability to spend money?
6. What happens to the amount of money available for spending when the interest rate is raised?
7. How does the interest rate charged by banks affect the availability of money for spending?
8. What is the impact of an increase in the interest rate on people's spending habits?
9. How does the Federal Reserve's interest rate affect the spending behavior of individuals?

A mortgage can be "sold" to an investor after it is taken out. To turn the future payments into cash, the lender needs to "lower the value" of the loan. This means that "one dollar in the future is not worth the same as one dollar today".


These are questions that the above text answers:

1. What is the process of selling a mortgage to an investor called?
2. Why does a lender need to lower the value of a loan to turn future payments into cash?
3. What does it mean when it is said that "one dollar in the future is not worth the same as one dollar today"?
4. How can a mortgage be converted into cash?
5. What is the purpose of mortgage securitization?
6. What is an Adjustable Rate Mortgage (ARM)?
7. What are some features of an Adjustable Rate Mortgage (ARM)?
8. What is the value of lowering the value of home loans?
9. What is the significance of understanding the value of lowering the value of home loans?