Explanation should include examples of loans such as

straight
amortized
adjustable-rate mortgage (ARM)
growing equity
balloon payment
reverse
buying subject to.

DPOR correlations: 18VAC135-20-400. 6 (Mortgages and deeds of trust); 18VAC135-20-400. 7 (Types of mortgages); 18VAC135-20-400. 14 (Real estate financing)

Process/Skill Questions:

Explain the difference between an ARM and a fixed-rate mortgage? How is the rate calculated on an ARM? What are the most common terms for ARMs?
What are the general qualifications for each type of mortgage?
What are the circumstances that must apply for a mortgage to be assumed by another borrower other than the original mortgagee?
How might a growing equity mortgage meet the needs of a customer whose income is expected to continue to increase over time?
What type of borrower might benefit from the monthly payments of a reverse-annuity mortgage?