Mortgage Loan Originator Mortgage Math and Calculations

Question 1

A borrower is purchasing a home for $250,000 and makes a 20% down payment. What is the loan amount?

Accepted Answer

$200,000

Answer

$250,000

Answer

$50,000

Answer

$225,000

Question 2

A borrower has a gross monthly income of $6,000. The maximum front-end DTI ratio is 28%. What is the maximum allowable monthly housing payment?

Accepted Answer

$1,680

Answer

$1,200

Answer

$1,800

Answer

$2,100

Question 3

A loan has a principal balance of $180,000 at a 6% annual interest rate. What is the monthly interest charge for the first payment?

Accepted Answer

$900

Answer

$1,080

Answer

$10,800

Answer

$750

Question 4

A borrower purchases a home for $320,000 and makes a $40,000 down payment. What is the loan-to-value (LTV) ratio?

Accepted Answer

87.5%

Answer

12.5%

Answer

75%

Answer

80%

Question 5

A borrower has total monthly debt payments of $1,500 and a gross monthly income of $5,000. What is their back-end DTI ratio?

Accepted Answer

30%

Answer

25%

Answer

35%

Answer

40%

Question 6

A home is appraised at $400,000 but the purchase price is $380,000. Which value is used to calculate LTV for a purchase transaction?

Accepted Answer

Purchase price ($380,000)

Answer

Appraised value ($400,000)

Answer

Average of both ($390,000)

Answer

Higher of the two ($400,000)

Question 7

If a borrower pays 2 discount points on a $200,000 loan, how much does the borrower pay in points?

Accepted Answer

$4,000

Answer

$200

Answer

$2,000

Answer

$400