Xinnix Ground School Mortgage Final
UPDATED ACTUAL Exam Questions and
CORRECT Answers
On an FHA loan the upfront MIP should be included when calculating cash-to-close. -
CORRECT ANSWER - False
The borrower must have 5% of their own funds when putting 15% down on a primary residence.
(FNMA) - CORRECT ANSWER - False
A 3-Year ARM adjusts every 3 years - CORRECT ANSWER - True
A Loan Officer can locate the summary of the eligibility requirements for a loan to be sold to a
specific lender/investor in the lender specs. - CORRECT ANSWER - False
A HELOC loan has an interest only payment - CORRECT ANSWER - True
A borrower paid semi-monthly and a borrower paid bi-weekly have the same number of pay
periods per year - CORRECT ANSWER - False
FHA Case Numbers are tied to the property, not the borrower. - CORRECT ANSWER - True
Judgments and tax liens are required to be paid off at or prior to loan closing. (FNMA/FHLMC) -
CORRECT ANSWER - True
Unreimbursed business expenses can be located on Form 2106 of a borrower's personal tax
return. - CORRECT ANSWER - True
HOA dues are included in the PITI calculation - CORRECT ANSWER - False
, A borrower's brother would like to give her money to help towards the down payment of her new
house. This would be considered.... - CORRECT ANSWER - A gift from a relative and would
require a gift letter, as well as proof that the funds have been transferred to the borrower's
account.
VA sets their own maximum loan limits. - CORRECT ANSWER - False
The monthly MI for an FHA loan is calculated by BASE Loan Amount x .85% /12 - CORRECT
ANSWER - True
Redisclosure of the Truth in Lending is required if the PAR changes more than _____% on a
fixed rate loan? - CORRECT ANSWER - .125
If a veteran has previously used their VA entitlement and it has not yet been restored, their COE
may show an available amount which is less that the VA maximum allowable entitlement -
CORRECT ANSWER - True
A room addition is allowed under the FHA 203(k) Limited program. - CORRECT
ANSWER - False
The maximum allowable ratios for an owner-occupant when using a non-occupant co-borrower
per FHLMC guidelines is ______________. - CORRECT ANSWER - 35/43
A borrower is considering a 1-year ARM with a note rate of 4.25%, 2/6 caps and a margin of
2.5%. What would the borrower's interest rate be for year 2 if the index is at 4.25%? -
CORRECT ANSWER - 6.25%
The builder must provide an appraisal certificate to the mortgage company on an FHA new
construction loan prior to closing. - CORRECT ANSWER - False
UPDATED ACTUAL Exam Questions and
CORRECT Answers
On an FHA loan the upfront MIP should be included when calculating cash-to-close. -
CORRECT ANSWER - False
The borrower must have 5% of their own funds when putting 15% down on a primary residence.
(FNMA) - CORRECT ANSWER - False
A 3-Year ARM adjusts every 3 years - CORRECT ANSWER - True
A Loan Officer can locate the summary of the eligibility requirements for a loan to be sold to a
specific lender/investor in the lender specs. - CORRECT ANSWER - False
A HELOC loan has an interest only payment - CORRECT ANSWER - True
A borrower paid semi-monthly and a borrower paid bi-weekly have the same number of pay
periods per year - CORRECT ANSWER - False
FHA Case Numbers are tied to the property, not the borrower. - CORRECT ANSWER - True
Judgments and tax liens are required to be paid off at or prior to loan closing. (FNMA/FHLMC) -
CORRECT ANSWER - True
Unreimbursed business expenses can be located on Form 2106 of a borrower's personal tax
return. - CORRECT ANSWER - True
HOA dues are included in the PITI calculation - CORRECT ANSWER - False
, A borrower's brother would like to give her money to help towards the down payment of her new
house. This would be considered.... - CORRECT ANSWER - A gift from a relative and would
require a gift letter, as well as proof that the funds have been transferred to the borrower's
account.
VA sets their own maximum loan limits. - CORRECT ANSWER - False
The monthly MI for an FHA loan is calculated by BASE Loan Amount x .85% /12 - CORRECT
ANSWER - True
Redisclosure of the Truth in Lending is required if the PAR changes more than _____% on a
fixed rate loan? - CORRECT ANSWER - .125
If a veteran has previously used their VA entitlement and it has not yet been restored, their COE
may show an available amount which is less that the VA maximum allowable entitlement -
CORRECT ANSWER - True
A room addition is allowed under the FHA 203(k) Limited program. - CORRECT
ANSWER - False
The maximum allowable ratios for an owner-occupant when using a non-occupant co-borrower
per FHLMC guidelines is ______________. - CORRECT ANSWER - 35/43
A borrower is considering a 1-year ARM with a note rate of 4.25%, 2/6 caps and a margin of
2.5%. What would the borrower's interest rate be for year 2 if the index is at 4.25%? -
CORRECT ANSWER - 6.25%
The builder must provide an appraisal certificate to the mortgage company on an FHA new
construction loan prior to closing. - CORRECT ANSWER - False
