Mortgage Loan Originator Mortgage Math and Calculations 2

Question 1

A borrower earns $85,000 annually. What is their gross monthly income used for qualifying purposes?

Accepted Answer

$7,083

Answer

$6,500

Answer

$7,500

Answer

$8,500

Question 2

A property is worth $350,000 and the loan balance is $245,000. What is the borrower's equity percentage?

Accepted Answer

30%

Answer

35%

Answer

45%

Answer

70%

Question 3

A borrower is applying for a $300,000 mortgage. The lender charges 1.5 origination points. What is the origination fee?

Accepted Answer

$4,500

Answer

$1,500

Answer

$3,000

Answer

$6,000

Question 4

A 30-year mortgage for $200,000 at 5% has a monthly payment of $1,073.64. What is the approximate total interest paid over the life of the loan?

Accepted Answer

$186,510

Answer

$100,000

Answer

$200,000

Answer

$173,911

Question 5

A borrower's monthly PITI payment is $1,800 and their gross monthly income is $5,500. What is their front-end DTI ratio?

Accepted Answer

32.7%

Answer

30.9%

Answer

33.3%

Answer

35.0%

Question 6

A property appraises for $275,000. The maximum LTV for a conventional loan is 80%. What is the maximum loan amount?

Accepted Answer

$220,000

Answer

$200,000

Answer

$225,000

Answer

$250,000

Question 7

A $150,000 ARM starts at 4% with a 2% annual cap and a 6% lifetime cap. What is the maximum interest rate this loan can ever reach?

Accepted Answer

10%

Answer

6%

Answer

8%

Answer

12%