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26 Cards in this Set
- Front
- Back
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To determing a monthly income based on a salary that is not pd monthly, 1. Multiply a semimontly salary by _____. 2. Mulitply a weekly by _____ & divide by _____. 3. Multiply a biweekly by _____ & divide by _____. 4. Divide a annual by _____. |
1. 2 2. 52, 12 3. 26, 12 4. 12 |
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Housing Ratio |
PITI (plus HOA, PMI or MIP) ____________________________
Gross Monthly Income |
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PITI includes: 1. 2. 3.
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1. Monthly principal & interest 2. Taxes 3. Insurance (1/12 of annual homeowners) |
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Acceptable limits for housing ratios: 1. Conforming- 2. FHA- 3. Jumbo- |
1. 28% 2. 31% 3. 33% |
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DTI |
Monthly Housing Costs + Monthly Liabilities ______________________________________________
Gross Monthly Income |
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Fixed expenses in DTI, in addition to PITI: 1. 2. 3. 4. 5. 6.
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1. Installment debt not secured by financial assets if payments continue for more thatn 10 mo or fewer than 10 remain but they significantly affect the borrower's ability to meet his obligations. (student loan, auto loan) 2. Deferred installment debt (furniture, student loan payments) 3. Lease payments 4. Min payments on revolving charge accts 5. Required child support 6. Business debt in borrower's name
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Aspects of a person's financial situation that provide a reason for the lender to go outside the normal guidelines |
Compensating Factors |
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Net rental income counted as stable monthly income is usually _____ % of gross monthly rent receipts. |
75 |
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Acceptable DTI ratios: 1. Conforming- 2. FHA- 3. VA- 4. Jumbo- |
1. 36% 2. 43% 3. 41% 4. 38-40% |
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LTV |
Loan Amount
Property Value or Sales Price |
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When a loan is above _____%, the lender may require that the borrower purchase mortgage insurance. |
80% |
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Some lenders may charge a higher interest rate & not require the MI regardless of LTV, as in _____ _____ _____ _____. |
Lender Paid Mortgage Insurance |
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The difference bt purchase price & loan amount |
Down Payment |
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Interest rates can be reduced by payment of prepaid interest at closing. This prepaid interest is called _____ _____ or a _____. |
Discount Points, Buydown |
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A _____ _____ , usually paid for by a person other than the buyer, reduces the monthly payments considerably for a short period of time (1,2,3 years) |
Temporary Buydown |
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*Page 84 on Buydowns!! |
***** |
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Annual Interest |
Percent Interest X Loan Balance |
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The rate at which the amount financed produces the monthly loan payment |
APR |
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To calculate the monthly payment that would go towards principal, take the following steps: 1. 2. 3. 4. |
1. Loan Balance x Annual Interest Rate=Annual Interest 2. Annual Interest / 12=Monthly Interest 3. Monthly Payment-Monthly Interest=Principal paid that month 4. Loan Balance-Principal Paid=Remaining loan balance |
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A LTV ratio relates the loan to the _____ _____ or _____ _____, whichever is less. |
Appraised Value, Sales Price |
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The loan balance plus the total credit line _____ is used to calculate the HCLTV or TLTV. |
Limit |
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When a monthly payment only includes principal and interest, the portion paid to principal can be determined by calculating and deducting the _____ portion of the payment from the total payment. |
Interest |
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In the calculation of an applicants income, capital gains can be considered if .... |
The borrower owns additional capital gains |
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A portion of each payment made on an uninsured amortized loan without an escrow account is applied to _____ & _____. |
Interest, Principal |
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A basis point is? |
One hundreth of 1% |
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Employment and income documentation is generally valid for no more than how many months prior to the date of the mortgage note?
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4
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