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Mortgage Loan Processor Mock Interview

Question 8 of 34 for our Mortgage Loan Processor Mock Interview

Mortgage Loan Processor was updated by on March 31st, 2021. Learn more here.

Question 8 of 34

Name for me four different types of mortgages and why a client would select each one.

"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."

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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

      Anonymous Interview Answers with Professional Feedback

      Anonymous Answer

      "The four types of mortgages I am most familiar with are Closed Mortgages, Fixed Rate Mortgages, Variable Rate Mortgages, and Home Equity lines of credit. I feel the reason why a client would choose a Closed Mortgage would be for the lower interest rate and the ability to save on interest. Ultimately, the goal would be to pay off the mortgage faster."

      Rachelle's Feedback

      You do a great job finishing off this response! The more thoughts you can share with the interviewer, the more knowledgeable you'll come across in the interview.
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