Section 19: Unit 3: Basic Math Concepts

Sophia's annual property taxes are $1,295, and her annual insurance premium is $942. How much of her monthly mortgage payment goes toward taxes and insurance? $107.91 $186.42 $232.12 $78.50

$186.42

Your clients are purchasing a $160,000 home. If they have a down payment of 25% and the bank charges two points at closing, how much are they paying in points? $2,350 $2,400 $2,450 $2,475

$2,400

The Bensons are looking at buying a $650,000 property with a 30-year loan at a 3.125% interest rate. How much would their monthly principal and interest amount be? Use 4.80738 as the factor for a 30-year loan at a 3.125% interest rate. $3,098.54 $3,124.80 $3,451.19 $3,719.25

$3,124.80

A buyer is purchasing a property for $400,000. His lender's loan-to-value ratio is 80%. How much is the buyer financing? $320,000 $360,000 $400,000 $80,000

$320,000

A homeowner's monthly mortgage payment is $580.23. If the taxes are $83.33 and the insurance is $41.66, how much of the monthly payment is principal plus interest? $454.34 $455.24 $465.24 $466.34

$455.24

Alistair bought a townhouse for $285,900. He got a 90% loan and the lender charged him 3-1/2 discount points. How much did Alistair pay in discount points? $1,000.65 $10,006.50 $9,005.85 $9,585.00

$9,005.85

The Smithwicks, your buyer clients, obtained a 90% loan on their new $400,000 home. At closing, they paid $6,150 for points at closing. How many points did they pay? .017 .02 1.71 1.8 **A point is 1% of the loan amount. The Smithwicks' loan is $360,000 ($400,000 x .90), and they paid $6,150 for points at closing. Divide the cost into points by the loan amount to get the number of points they paid: ($6,150 ÷ 360,000 = 0.0170833, or 1.71). Also, remember to round off calculations.

1.71

In calculating PITI for a mortgage payment, the annual taxes and insurance are divided by ______ and are added to the monthly principal and interest payment to make up the total monthly payment. 10 12 4 8

12

Your client Ellis is purchasing a property for $520,000. He made a down payment of $200,000 and plans to finance $320,000. What is the LTV ratio as rounded to the nearest percentage? 50% 55% 62% 65%

62%

An amortized loan includes a regular payment that includes both principal and ______ to gradually pay off the loan over its entire term. Interest Mortgage insurance Property insurance Taxes

Interest

Which of the following options describes a loan's beginning balance? Amount of payment that will be applied to the interest Amount of payment that will be applied to the loan balance Amount to be sent as payment each month Loan balance before the monthly payment is applied **The beginning balance is the loan balance before the monthly payment is applied.

Loan balance before the monthly payment is applied

To compute a monthly principal and interest payment, which of the following pieces of information do you need to know? Interest rate and loan amount Interest rate and term of the loan Monthly payment multiplier Mortgage loan value, annual percentage rate, loan term, and payment frequency

Mortgage loan value, annual percentage rate, loan term, and payment frequency