6.3 Quiz Questions
What is the monthly Principle and Interest Payment on a mortgage note that is issued for 30 years at 4.75% annual interest if the borrower is obtaining a $225,000 loan?
$1,174.50
What would be the total charged to a borrower for discount points and origination on a closing statement if taking out an 80% LTV loan at 5% annual interest on a $450,000 purchase while paying for 2 discount points and paying a 1% loan origination fee?
$10,800
A property is scheduled for closing on August 20. Which of the following is the best estimate of a seller's mortgage loan payoff as of the day of closing if they are selling their home for $250,800 and paying off their 5% annual interest loan which has a principle balance of $215,675?
$216,274.09
Calculate the interim interest owed on a February 20 closing where the borrower is obtaining a 90% LTV loan at 4.25% annual interest to purchase the $237,000 property.
$276.99
What is the balance remaining on an outstanding mortgage note after the first payment is made if the borrower took out a note in the amount of $285,000 for 30 years at 5.5% annual interest?
$284,687.45
How much interim interest would be charged to a borrower at a June 12th closing if they were taking out a 90% LTV loan on a $272,000 purchase and the note was issued at a 4.25% annual interest rate?
$549.10
How much interest has accrued by February 17, 2022 on a 4.5% mortgage note that had a balance of $372,560 as of the most recent payment?
$791.69
What is the amortization loan factor for a 15 year note at 5.5% annual interest?
$8.18 per month
The buyer of a new home is acquiring a loan for 90% of the $135,000 purchase price. One lender is offering the buyer a 15-year conventional mortgage with monthly principal and interest payments of $1,258. Another lender is offering the buyer a 30-year conventional mortgage with principal and interest payments of $896. Both mortgages are offered at 6.75% annual interest with a 1% origination fee. What is the difference in the total amount of interest that would be charged over the life of the two loans?
$96,120
Amortized loans are paid off over time by making regular payments to principal and interest. All of the following statements regarding amortized loans are true, EXCEPT:
A borrower will pay the same amount of principal on all payments in a properly amortized loan
A borrower obtains a 30-year fixed mortgage with a monthly payment of $1,200. All of the following statements are true regarding financing, EXCEPT:
Additional payments that are made on an amortized loan will result in a reduction in the subsequent monthly loan payment amounts for the remaining term of the loan.
Which of the following best describes a borrower obtaining a loan where the payment includes principal, interest, taxes and insurance?
Budget Loan
Which of the following statements regarding equity is correct?
Equity increases when the property appreciates.
A mortgagor refinances their first mortgage, however since the second mortgage is near maturity, elects to continue to pay the second note as agreed. The new lender wants to be the superior lien over the second mortgage. What will the second lender do to accomplish this through:
Subordination.