1. principal, interest, escrow
   principal, interest, taxes, insurance
2. principal, interest, taxes, amortization fees

Use the handy acronym PITI to remember this one -- principal, interest, taxes, insurance.

1. Their introductory interest rates are very low but increase greatly after a few years.
   They don't require a down payment.
2. The term is so short that the monthly payments are sky-high.
   The interest rates fluctuate wildly every month.

Subprime mortgages are tempting because their interest rates are so low -- but then they're hiked after a few years. They're also offered to buyers with poor credit, who often have trouble making those higher payments.

1. 620
   650
2. 680

Subprime' mortgages refer to the borrower's credit score, not the loan's low interest rate. Most people have credit scores at least in the mid- to high 600s, and subprime borrowers fall under 620.

1. Florida
   Hawaii
2. California

California has more homes than any state and thus the most foreclosures -- it also has the highest subprime mortgage rate.

1. Bank of America
   Wells Fargo
   ING Direct
   Ditech
2. Citibank
   Countrywide
   Chase

Companies change names and are bought and sold on a seemingly daily basis these days, but Countrywide was the champ at press time.

1. one year
   two years
2. five years
   10 years

Extra payments go directly to the principle of your loan (as opposed to paying off interest). So just one extra payment a year goes a long way -- it will shorten your loan term by 10 years.

1. one
   two
   three
2. four
   five
   six

Fixed-rate mortgages come in 15-, 20- and 30-year terms.

1. 15
   20
2. 30

Thirty-year mortgages are the easiest to get -- the longer term also results in lower payments, and you get a bigger tax deduction.

1. adjustable-return mortgage
   annual return mortgage
2. adjustable-rate mortgage
   annual reasonable mortgage

The interest rates on adjustable-rate mortgages change with market rates. The rates are lower but obviously not as stable, so ARMs are best if you aren't planning on staying in the house long-term.

1. 10
   20
   30
2. 40
   50
   60

ARM interest rates have been known to increase up to 50 percent, and maybe even more.

1. divorce
   loss of income
   changes in mortgage interest rate
2. illness
   failure to sell the home

Curtailment of income' was the main reason, although it's important to remember that the major fallout from subprime mortgages was still to come, at the end of 2008.

1. 8 percent
   23 percent
   47 percent
2. 58 percent
   71 percent

There were a whopping 71 percent more homes in foreclosure in 2008 -- almost 2 percent of all homes.

1. monster loans
   jumbo loans
   colossal loans
2. oversize loans
   mammoth loans

If you're financing more than $300,700, you have a jumbo loan.

1. 24/34
   26/35
   28/36
2. 30/37
   32/38

Most lenders want you to have a 28/36 debt-to-income ratio.

1. No more than 28 percent of your total monthly pretax income can be used for housing.
   You must pay less than 28 percent of your monthly post-tax income for all debts, including housing.
2. Your monthly income must be 28 percent greater than the total of your debts.

Twenty-eight is the maximum percentage of your monthly pretax income that you can spend on housing. So if your potential new mortgage would equal 30 percent of your income, you either wouldn't qualify for the loan or you'd have to do a lot of wheeling and dealing to get it.

1. Your monthly income has to be 36 percent more than the mortgage payment.
2. No more than 36 percent of your monthly income can go toward your total monthly debt, including the mortgage.

It means that your total monthly debt, including mortgage, must be no more than 36 percent of your monthly income. So you could qualify with the aforementioned 28 percent part, but if you have car payments and student loans that add up to more than 36 percent of your monthly income, you could be out of luck.

1. two
   three
2. four
   five

Two is the magic number, even for part-time employees or if you're self-employed.

1. 1 to 2
   2 to 5
2. 3 to 6
   4 to 7

Closing costs vary according to the tax rates where you live, but 3 to 6 percent is about average.

1. 1890
   1914
   1925
2. 1934
   1946
   1953

Insurance companies, not banks, actually came up with the idea for mortgages. But before 1934, when the Federal Housing Administration stepped in, down payments could be as high as 80 percent.

1. You owe more than your house is worth.
2. You've failed to make payments for six months.

The falling housing market -- and a zillion other factors -- have caused more homeowners than ever before to be upside-down on their mortgages, meaning they owe more than the house is worth.