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37 Cards in this Set
- Front
- Back
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1. A customer would like to purchase their first home. They have $30,000 to put down on the home. Assuming that they would like to avoid paying PMI, what is the maximum amount they could purchase?
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$150,000
30000 x .20 = 150000 |
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2. If a customer purchases a home for $250,000 and it appraises for $240,000 how much money do they have to put down to avoid paying PMI?
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$48,000 + $10,000 difference = $58,000
240000 x .20 = 48000 + 10000 |
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3. A customer wants to refinance his home. He currently owes $235,000. How much does his house need to appraise for to keep him at 75% LTV?
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$313,333.33
235000/.75 = 313333.33 OR 100/75 = 1.333 x 235000 |
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4. A customer has a first mortgage of $200,000 and a HEIL for $25,000. His house is worth $250,000. What is his LTV & CLTV?
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LTV 0.80, CLTV 0.90 (80/90)
200000+25000=225000 225000/250000 |
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5. A customer has a 1st mortgage for $300,000 and is currently at 65% LTV and wants to take out a HELOC for a CLTV of 85%. How much does the home need to appraise for to qualify and what would his line amount be?
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$92307.69 is his line and the house would need to appraise for $461,538.46
300,000 / .65 = 461,538.46. 461,538.46 x .85 = 392,307.69 - 300,000 = 92,307.69 |
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6. A customer applying for a conventional 1st mortgage is allowed a 41% back-end DTI. If they have $3500 in GMI what is the total allowable debts?
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$1,435
3500 x .41 = 1435 |
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7. A customer has a credit card bill for $37 per month, a car payment of $350, a PITI payment of $1550, a water bill for $87 and a cell phone bill for $85 per month. If the customer makes $4200 per month, what is their DTI?
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46
37+350+1550=1937 1937/4200=0.46 back end |
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8. What is the customer’s front end ratio based upon the scenario in question 7?
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37
1550/4200=.37 front end |
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9. A customer has a car payment of $275, student loans for $300 and credit card payments of $180. If the customer makes $4000 per month, how much of a PITI payment can they afford assuming a max DTI of 41%?
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$885.00
275+300+180=755 4000x0.41=1640 1640-755=885 |
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10. How does the scenario in Question 9 change if the customer makes $1000 a week?
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They can afford $1,021.67
1000x52/12=4333.33x.41=1776.67-755=1021.67 |
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11. A $200,000 loan at 3.00% interest carries what interest only payment?
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$500
200000x0.03 / 12 |
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12. A $300,000 loan at 3.5% interest on a 7/1 ARM carries what interest only payment?
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$875 for the first 7 years. Adjustable when entering 8th year.
300000x0.035 / 12 |
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13. A $200,000 30 year fixed loan has a rate of 3.750%. The total PI payment is $926.23, how much of that payment goes to interest?
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$625
200000x0.0375=7500 / 12 = 625 |
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14. A customer’s interest only payment is $850 and the rate is 3.5%. What is the customer’s balance?
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$291,428.57
850x12=10200/0.035 |
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15. A customer’s interest only payment is $625 and the balance is $150,000. What is the customer’s interest rate?
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5%
625x12=7500/150000 |
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16. A customer has a PI payment of $1145.80, a rate of 4%, and a $240,000 loan amount on a 30 year fixed mortgage. How much money is going toward principle?
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$345.80
240000 x 0.04 = 9600/12 = 800. 1154.80-800=345.80 |
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17. A customer has a PI payment of $2,981.06, a rate of 3.50%, and a $417,000 loan amount on a 15 year fixed mortgage. How much money is going toward principle?
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$1,764.81
417000 x 0.035 = 14595/12 = 1216.25. 2981.06-1216.25 = 1764.81 |
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18. A customer has a 30 year fixed, due in five year mortgage and a loan amount of $375,000. The interest rate is 2.5% for the first 5 years and carries a monthly payment of $1481.70 before the balloon payment is due. What amount of the payment is going toward principle?
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$700.45
375000 x 0.025 = 9375/12=781.25 1481.70-781.25=700.45 |
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19. A certain 30 year mortgage of $175,000 carries an interest rate of 3.5%; a customer would pay how much money during the duration of the loan
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$358,750
175000 x 0.035 = 6125 /12 = 510.42 x 360 = 183750 + 175000 = 358750 |
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20. On a 30 due in 15 year balloon mortgage with a loan amount of $200,000 and a rate of 2.75%, a customer would pay how interest much during the loan?
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$82,500
200000 x 0.0275 = 5500 / 12 = 458.33 x 180 = 82500 |
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21. A customer’s PI payment is $1157.83; they have an annual tax bill of $2200 and annual insurance obligations of $1400. What will their monthly PITI payment be?
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$1,457.83
2200 + 1400 = 3600/12 = 300. 300+1157.83=1457.83 |
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22. A certain 5/1 Mortgage comes with caps that are 5/2/5. Please explain what each of the caps means.
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First cap is initial cap and does not occur until 61st month. Second is periodic cap after initial cap has been surpassed. It is the annual adjustment. Last number is lifetime cap. Over the lifetime of the loan the rate cannot exceed that cap.
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23. If the start rate on a 5/1 mortgage is 2.750% and has caps of 5/2/5 what is the highest the rate would ever be?
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Depends on what the index and margin is but assuming 2.750 is the number then the highest it would ever go is 7.750%
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24. A customer takes out a new 7/1 ARM with a start rate of 3.00% and the caps are 6/2/6 what is the highest rate for this customer in year six?
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3.00%
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25. A customer took out a 5/1 ARM 6 years ago with caps of 5/2/5. The loan is now in the adjustable period. The margin is 2.25% and the index is .250%. Assuming the index jumps to 5% before the next ARM adjustment, what will this customer’s rate move to?
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4.50%
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26. A customer is about the come to the end of the fixed period on their 3/1 ARM. The caps are 2/2/6, the start rate was 2.250% and the margin is 2.250%. What will the highest potential for the first adjustment be and what would the index have to be in order to achieve that?
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4.25. Index would need to be at least 2.00 or higher but the cap is 2 so if the index climbs higher than 2.00 it does not matter.
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27. A customer is required to bring the per diem interest to the closing table for their upcoming mortgage. The loan amount is $227,500 and the interest rate is 3.125%. They have to bring 8 days of interest to closing. How much will the check need to be?
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$157.99
227500 x 0.03125 = 7109.38/360 = 19.75 x 8 = 157.99 |
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28. A $325,000 loan with a rate of 3.375% carries what cost per day?
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$30.47
325000 x 0.0375 = 10968.75 / 360 = 30.47 |
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29. How many days is the calendar in the per diem interest calculation?
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360
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30. A customer is taking out a $417,000 mortgage at a fixed rate of 3.875%. How much is the daily interest cost of this mortgage?
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$44.89
417000 x 0.03875 = 16158.75 / 360 = 44.89 |
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31. What is the standard threshold which requires PMI on a conforming loan?
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If down payment is not at least 20% of value or if LTV is over 80%
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32. At this LTV the customer can request to have their PMI dropped, what is that LTV?
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80%
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33. At this LTV a lender is required to drop the PMI, what is that LTV?
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78%
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34. A $250,000 loan is being taken out on a 30 year fixed mortgage. The PMI factor is .0032. What will the monthly PMI be?
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$66.67
250000 x 0.0032 = 800 / 12 = 66.67 |
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35. A customer refinanced into a loan and due to the appraised value, she now has to pay PMI. The loan amount is $115,000 and the PMI factor is .0025 for her 15 year fixed. What will the PMI payment be each month?
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$23.96
115000 x 0.0025 = 287.50 /12 = 23.96 |
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If closing costs were $5,060, the current payment amount is $1175, and the proposed payment is $922. How long does it take for a customer to recapture their closing costs when they want to refinance?
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20 Months
5060/ 1175-922= 253 = 20 |
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If a borrower had an outstanding loan balance as of April 1 of $549,287, with monthly loan payments of $4,020, at an interest rate of 5.75%, what would the outstanding loan balance be as of May 1?
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$547,899
549287 x 0.0575 = 31584.0025/12 = 2632 4020-2632=1388 549287- 4020 = 545267 + 2632 = 547899 |
