Test what you learned: 15-Year vs 30-Year Mortgage key terms

3 quick questions on the terms from the 15-Year vs 30-Year Mortgage calculator. Answer one at a time, then see your full results at the end.

Question 1 of 3

"Amortization" describes...

The process of refinancing a mortgage to a lower rate A penalty for missing a mortgage payment How each mortgage payment splits between interest and principal over the life of the loan The legal transfer of a title at the end of a loan term

Pick an answer to continue.

Amortization is how each payment splits between interest and principal — early payments lean heavily toward interest.

Question 2 of 3

"Principal" vs "interest" —

Principal is the down payment; interest is the monthly payment Principal applies to 15-year loans; interest applies to 30-year loans Principal is set by the lender; interest is set by the borrower Principal is what you borrowed; interest is the cost of borrowing it

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Principal is the amount you actually borrowed; interest is the ongoing cost charged for borrowing it.

Question 3 of 3

"Opportunity cost" here means...

The cost of missing a mortgage application deadline A fee lenders charge for offering multiple loan options What you give up by using cash for one thing instead of investing it elsewhere The extra interest paid on a 30-year loan versus a 15-year loan

Pick an answer to see your results.

Opportunity cost is what you give up by using your cash one way (like extra mortgage payments) instead of another (like investing it).

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This quiz is a learning aid, not a certification or formal assessment. GetRealTerms provides general estimates for informational purposes only — nothing here is tax or financial advice.