NMLS KEY WORDS SAFE EXAM QUESTIONS WITH CORRECT ANSWERS

NMLS KEY WORDS SAFE EXAM QUESTIONS WITH CORRECT ANSWERS Amount financed - Answer-It means the amount of money you are borrowing from the lender, minus most of the upfront fees the lender is charging you. Annual income - Answer-Annual income is a factor in a mortgage loan application and generally refers to your total earned, pre-tax income over a year. Annual income may include income from full-time or part-time work, self-employment, tips, commissions, overtime, bonuses, or other sources. A lender will use information about your annual income and your existing monthly debts to determine if you have the ability to repay the loan. Whether a lender will rely upon a specific income source or amount when considering you for a loan will often depend upon whether you can reasonably expect the income to continue. Annual Percentage Rate (APR) - Answer-An annual percentage rate (APR) is a broader measure of the cost of borrowing money than the interest rate. The APR reflects the interest rate, any points, mortgage broker fees, and other charges that you pay to get the loan. For that reason, your APR is usually higher than your interest rate. Appraisal fee - Answer-An appraisal fee is the cost of a home appraisal of a house you plan to buy or already own. Home appraisals provide an independent assessment of the value of the property. In most cases, the selection of the appraiser and any associated costs is up to your lender. Automatic payment - Answer-Automatic payments allow you to set up recurring mortgage payments through your bank. Automatic payments can be a convenient way to make sure that you make your payments on time.