NMLS Mortgage Finance and Calculations Questions and Answers

Question 1

A borrower obtains a $320,000 loan with a fixed interest rate of 6.75%.
If their closing is on May 22nd, and their first mortgage payment is due on July 1st, how much per diem interest will they need to pay at closing for the month of May? (Assume a 365-day year and that May has 31 days).

Accepted Answer

$591.78

Answer

$650.96

Answer

$532.61

Answer

$1,832.88

Question 2

A home is purchased for $450,000. The borrower makes a down payment of $67,500. What is the Loan-to-Value (LTV) ratio?

Accepted Answer

85%

Answer

90%

Answer

15%

Answer

80%

Question 3

A prospective borrower has a gross monthly income of $7,500. Their proposed monthly housing payment (PITI) is $2,025. What is the borrower's housing expense ratio (front-end DTI)?

Accepted Answer

27%

Answer

32%

Answer

28%

Answer

36%

Question 4

A borrower is obtaining a loan for $280,000. To lower their interest rate, they are paying 2 discount points at closing. What is the total cost of the discount points?

Accepted Answer

$5,600

Answer

$2,800

Answer

$7,000

Answer

$4,200

Question 5

Which of the following is true regarding the principal and interest portions of a monthly payment on a 30-year, fully amortizing, fixed-rate loan?

Accepted Answer

The interest portion is highest in the early years and decreases over time.

Answer

The principal and interest portions remain equal throughout the loan term.

Answer

The principal portion is highest in the early years and decreases over time.

Answer

Both the principal and interest portions increase over the life of the loan.

Question 6

A borrower has a 5/1 ARM with an initial interest rate of 4.5% and a 2/2/5 cap structure. The margin is 2.75%. At the first adjustment, the index is 3.0%. What will the borrower's new interest rate be?

Accepted Answer

5.75%

Answer

6.5%

Answer

4.5%

Answer

7.25%

A borrower obtains a $320,000 loan with a fixed interest rate of 6.75%.If their closing is on May 22nd, and their first mortgage payment is due on July 1st, how much per diem interest will they need to pay at closing for the month of May? (Assume a 365-day year and that May has 31 days).

A borrower obtains a $320,000 loan with a fixed interest rate of 6.75%.
If their closing is on May 22nd, and their first mortgage payment is due on July 1st, how much per diem interest will they need to pay at closing for the month of May? (Assume a 365-day year and that May has 31 days).