NMLS MATH QUESTIONS AND ANSWERS A+
GRADED.Buy Quality Materials!
Calculating qualifying monthly payment:
A borrower's stable monthly income is $6,800. Every month he pays: $485 car
payment, $200 revolving credit payment, and $1,500 alimony.
What is the maximum monthly mortgage payment for which he would qualify on
an FHA mortgage loan?
$739
6800 x 31%=2108
(6800 x 43%) - (485+200+1500)=739
Answer is whichever is less
(Income x housing expense ratio)= x
(Income x total debt to income ratio) -
consumer debt = y
Answer is whichever one is less
Calculating LTV (Loan To Value)
What is the loan-to-value ratio if the loan amount is $100,000, the appraised value
is $125,000 and the sales price is $127,000?
80% LTV
100,000 divided by 125,000= 80% LTV
Loan amount divided by the appraised value or purchase price whichever one is less=
LTV
Calculating Interest Only payment
What is the total monthly payment, including escrows, on a 30-year interest only
loan of $205,000, taxes of $1,800 per half, hazard insurance of $420 annually, $65
monthly mortgage insurance, and an interest rate of 6%.
$1425
205,000 x 6% =12300 divide 12= 1025 1800 per half so take 1800 and divide by 6
because half means half a year = 300 per month 420 divided by 12 because insurance
is paid annually. $35 per month 65 for mortgage insurance. Add all the monthly
payments together to equal the total monthly payment. 1025 + 300 + 35 + 65= 1425
Interest only payments are calculated by multiplying the loan amount by the interest rate
and divide by 12.
GRADED.Buy Quality Materials!
Calculating qualifying monthly payment:
A borrower's stable monthly income is $6,800. Every month he pays: $485 car
payment, $200 revolving credit payment, and $1,500 alimony.
What is the maximum monthly mortgage payment for which he would qualify on
an FHA mortgage loan?
$739
6800 x 31%=2108
(6800 x 43%) - (485+200+1500)=739
Answer is whichever is less
(Income x housing expense ratio)= x
(Income x total debt to income ratio) -
consumer debt = y
Answer is whichever one is less
Calculating LTV (Loan To Value)
What is the loan-to-value ratio if the loan amount is $100,000, the appraised value
is $125,000 and the sales price is $127,000?
80% LTV
100,000 divided by 125,000= 80% LTV
Loan amount divided by the appraised value or purchase price whichever one is less=
LTV
Calculating Interest Only payment
What is the total monthly payment, including escrows, on a 30-year interest only
loan of $205,000, taxes of $1,800 per half, hazard insurance of $420 annually, $65
monthly mortgage insurance, and an interest rate of 6%.
$1425
205,000 x 6% =12300 divide 12= 1025 1800 per half so take 1800 and divide by 6
because half means half a year = 300 per month 420 divided by 12 because insurance
is paid annually. $35 per month 65 for mortgage insurance. Add all the monthly
payments together to equal the total monthly payment. 1025 + 300 + 35 + 65= 1425
Interest only payments are calculated by multiplying the loan amount by the interest rate
and divide by 12.
