NMLS Prep

Above 80% LTV, if the loan is $260,000 and the MI factor is .0065, what is the monthly mortgage insurance premium?

• $118.45

• $132.78

• $140.83

• $140.82

Above 80% LTV, if the loan is $310,000 and the MI factor is .48%, what is the monthly mortgage insurance premium?

• $124

• $96

• $107

• $138

A borrower has a $133,000 loan with an initial PI payment of $942 and MI factor is .0052. Their other monthly expenses include escrow $230, car payment $410, and $560 in utilities. If their gross monthly income is $3,400, what is their total expense ratio?

• 52.88%

• 63.21%

• 48.21%

• 48.22%

A borrower is receiving a 30 year fixed loan with an interest-only payment of $1,400 for the first 10 years. If the interest rate is 5.25%, what is the initial loan amount?

• $310,000

• $320,000

• $280,000

• $410,000

Borrower agrees to a 2/1 Buydown loan with an interest rate of 6.5% in the third year. What is the permanent note rate for the life of the loan?

• 6.5%

• 5.5%

• 4.5%

• 6.25%

A borrower receives a 3/1 ARM with a start rate 4.375% and interest rate caps of 2/3/5. On the first rate adjustment, the index changes to 5.375% and the margin is 2%. What will the interest rate be on the first adjustment?

• 7.375%

• 4.375%

• 5.375%

• 6.375%

A borrower is purchasing a home for $183,000. They are putting 10% down payment. They are paying 2.5 discount points and 1% origination fee. How much will they pay in settlement costs?

• $6,405.00

• $3,660.50

• $5,764.50

• $5,398.50

A borrower is receiving a loan of $200,000 with a rate of 5.0%. If the loan funds with 10 days remaining in the month, what is the total amount of pre-paid interest gathered in the loan?

• $273.97

• $273.98

• $273.96

• $311.27

Mary has an adjustable rate mortgage with a start rate of 3.25%. It has a 1% annual cap (Periodic adjustment cap). The margin is 2.25. The index the first year is at 1.62%. The second year is at 2.5%. The third year is at 2.20%. What is Mary's interest rate in the third year? (round to the nearest eighth)

• 4.75%

• 4.45%

• 4.50%

• 3.875%

Kevin took out a 5 year I/O loan to purchase a house at $180,000 where he put down 20%. At 40 months the home’s value increased to $250,000. How much equity in the home does Kevin now have?

• $106,000

• $70,000

• $36,000

• $144,000