NMLS Segment 11 (Financial Calculations)

What is the loan amount if the interest rate is 7.5% per year and the monthly interest payment is $1,250?

$200,000

On a $100,000 loan, the borrower is charged 2 discount points by the lender and 1 point mortgage broker fee by the originator. How much does the borrower have to pay to close the loan?

$3,000

Private Mortgage Insurance costs for a $300,000 loan with a factor of 1.2% would be:

$300

For a $240,000, 3/1 adjustable rate mortgage with a rate of 5.5%, what would the per diem interest be? Assume a 360 day year.

$36.66

A borrower is buying a house for $180,000. He provides a down payment of $40,000. If he pays three discount points, what is the total cost of the points?

$4,200

A borrower got a loan for a home which cost $200,000. He borrowed 80% and paid 1 point for a loan origination fee and 2 discount points. The amount of loan fees is

$4,800

On a $100,000 loan with a 20-year term and 4.75% interest rate, a lender charged a loan origination fee of $5,500 and two discount points. What is the total amount of lender charges?

$7,500

Using a 36% back-end ratio, an applicant for an 80% conventional loan, with a gross monthly income of $3,600 and monthly fixed debts of $400 would be eligible for a loan with monthly payments to PITI of

$896.

The loan amount (principal) is $50,000 and the annual interest paid is $5,500. What is the annual interest rate?

11%

If a loan applicant says they are paid a semi-monthly salary, then it means that the applicant has __________ pay periods per year.

24

What is a borrower's front-end ratio given the following variables?Gross monthly income: $5,300Monthly principal and interest: $1,020Annual property taxes: $3,278Annual homeowners insurance: $650Monthly auto payment: $295

25%

What is the standard qualification ratio for a conventional mortgage?

28/36

For applicants who have monthly pensions, the pension may be included in the income amount if the applicant can prove that he/she will receive it for at least __________ or longer.

3 years

A borrower earning $34,000 annually, has a projected monthly mortgage payment of $840 (including taxes and insurance), a monthly $100 HOA fee, and a monthly $87 credit card payment. What is the front-end ratio?

33.2%

Bob's GMI is $2,000 per month. He currently rents an apartment for $800 per month. Bob has a $199 monthly car lease and an $80 monthly credit card payment. What is Bob's qualifiying ratio?

40/54

Qualifying for a VA loan requires an applicant to have a __________ or less.

41 debt ratio

A home is appraised at $100,000. The borrower currently has a loan of $50,000, an open-end line of credit with a limit of $25,000 and a current balance of $17,500. What is his LTV?

50%

Rob is looking to purchase a property with a sale price of $200,000. He plans on making a $24,000 down payment on the purchase. What would be the loan-to-value for this transaction?

88% LTV

What is the loan-to-value if the loan amount is $139,500, the appraised value is $164,117, and the sale price is $155,000?

90%

An applicant's gross monthly income (GMI) is the applicant's income amount:

before taxes and other deductions are calculated.

The combined loan-to-value ratio can be found by

dividing the total of all loans by the property value.

Determining if an applicant meets income ratio qualifications requires a loan originator to calculate the applicant's:

housing ratio and debt ratio.

If bonus income is being used for income qualification, then loan originators should:

obtain a VOE that shows bonus history, and credit will be given for future bonus continuation.

The most accurate way to calculate an applicant's hourly wages is by:

obtaining a Verification of Employment (VOE).

All may be included in a borrower's income analysis EXCEPT

sporadic overtime and bonuses.

Determining the type of loan an applicant can qualify for can be done by taking his/her gross monthly income and multiplying it by:

the maximum housing and debt ratios for the loan program.

A combined loan-to-value ratio (CLTV) occurs when

there will be two loans on one property.

Annual interest on a loan can be calculated by multiplying the loan amount by

Annual Percent Interest.

A homeowner has a home worth $220,000. He has an outstanding loan of $165,000, and a HELOC with a limit of $30,000, on which he has drawn $12,000. Which of the following is NOT true?

His TLTV is 94%

When secondary financing for a mortgage loan is a HELOC, the loan balance plus the total line limit is used to calculate the

TLTV

Which of the following would be included as an expense in calculating the debt-to-income ratio? Assuming any debt has at least 10 months of payments remaining.

a personal loan

When reviewing an applicant's W2 form, what would be the reason why for the amount in Box 3 (Social Security wages) to be less than the amount in Box 1 (Wages, tips, and compensation)?

The applicant earned more income than the Social Security tax could be collected on

Which one of the following would NOT be included in an applicant's debt ratio?

Weekly grocery bills

The term combined loan-to-value is used when describing a loan that is:

a combination of more than one mortgage.