How to Answer: Name for me four different types of mortgages and why a client would select each one.
Advice and answer examples written specifically for a Mortgage Loan Processor job interview.
8. Name for me four different types of mortgages and why a client would select each one.
How to Answer
The interviewer is seeking assurances that you have job-specific knowledge. Be sure to respond by naming and explaining each of the four. You may also want to draw on your work experience to show how you came to understand this aspect of the position.
Written by Rachelle Enns on March 19th, 2021
Answer Example
"The four types of mortgages that I am most familiar with are Closed Mortgages, Fixed Rate Mortgages, Variable Rate Mortgages, and Home Equity Lines of Credit. I've dealt with many clients who are tempted to opt for a closed mortgage because of the low-interest rates but often reconsider when they learn that they'll pay more for the mortgage in the long-run. Variable-rate mortgages are selected when interest rates are currently high, and there is optimism for rates to go lower. Fixed-rate mortgages are an excellent choice for most borrowers because you can lock in rates for the life of your mortgage and if rates do drop, you can always refinance down the road. Home equity lines of credit are slightly different in that the borrowers already have a mortgage and are seeking equity from their home, to finance things like home renovations."
Written by Rachelle Enns on March 19th, 2021
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