Mortgage Math Multiple Choice Exercise
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1. If your borrower wants to pay one point to buy down the rate and the loan amount is $145,000, how much will they have to pay?
2. In general, what is the highest front end ratio that can qualify for a conventional loan?
3. In general, what is the highest back end ratio that can qualify for a conventional loan?
4. If Cathy is paid $1,599.76 every two weeks, her mortgage payment is $1,109.17 and she also pays $150.00 monthly to escrow what will her front end debt ratio be?
5. If Cathy has a $385 car payment, is paid $1,599.76 every two weeks, has a mortgage payment of $1,109.17 and also pays $150.00 monthly to escrow, what would be her back-end debt ratio?
6. If Bill has a mortgage loan that is at 75% LTV and the loan amount is $182,500.00, rounded to the nearest $100, what was the original loan amount if he originally financed 100%?
7. If Bill has a mortgage loan that is at 75% LTV and the loan amount is $182,500.00, rounded to the nearest $100, how much equity has Bill paid to this point?
8. If you owe $168,000 on your mortgage and your most recent appraisal comes in at $275,000, what is your LTV?
9. If Mr. Smith makes $16.25 per hour and he works 40 hours per week, what is his gross monthly income?
10. If Mrs. Jones collects a tax exempt social security income of $1,500 per month and she has had a part-time job for 3 years averaging 20 hours per week for $8.50 an hour, what is her monthly gross income?
11. If Mr. Robinson gets paid on the 1st and the 15th of each month and his gross pay is $1,565.00 per pay check, what is his monthly income?
12. You are purchasing a home for $275,500. The broker is charging you 1.875% in points. How much are you being charged for points?
13. For a loan of $185,000, what will your first monthly interest payment be if your note rate is 5.25%?
14. For a loan of $185,000, what will your daily interest be at a rate of 5.25%?
15. Georgia has saved $3,500 for a down payment on her first home. If she qualifies for a loan with a 5% down payment, how much house should she be shopping for?
16. If the selling price of the home is $187,000, the appraised value comes in at $192,000 and you made a 20% downpayment, what would be your loan amount?
17. If the selling price of the home is $187,000, the appraised value comes in at $192,000 and you made a 20% downpayment, what would be your downpayment?
18. The Greens are buying a home. They are financing 90% of the value of the home. They are putting down 10%, their first mortgage will be at 80% LTV and their second will be 10% LTV, so their Combined Loan To Value (CLTV) will be 90%. If the home’s appraised value is $213,500, how much will their downpayment be?
19. Jim and Barb have a home appraised at $184,600. They hold a first mortgage with a balance of $116,300 and a HELOC with a balance of $31,380. What is their HLTV?
20. Jim and Barb have a home appraised at $184,600. They hold a first mortgage with a balance of $116,300 and a HELOC with a balance of $31,380, if Jim and Barb want to refinance to consolidate their loans and get cash out and they will have a final LTV of 90%, how much are they cashing out?
21. If the appraised value of the home is $200,000 and the balance of the first mortgage is $120,000 how much is the principal loan amount of the second mortgage if they go to 90% LTV?
22. For a conventional loan, with a monthly income of $8,430, what is the maximum housing payment you are allowed?
23. For an USDA loan, with a monthly income of $8,430, what is the maximum housing payment you are allowed?
24. What is the maximum monthly total debt, in dollars, allowed for a veteran wanting a VA loan whose income is $47,500 per year?
25. When calculating income, which of the following does not need to be “grossed up?”
26. What are the maximum front-end/back-end debt ratios for FHA loans?
27. If you are paid biweekly, how many times a year do you receive a paycheck?
28. The total loan amount is based on:
29. For persons whose income is based solely on commissions, normally an average of the last ____ years is used.
30. If wanted to buy a house with a PITI payment of $1,035/mo how much is the least you have to make per month in order to qualify for an FHA loan?