XINNIX GROUND EVALUATION EXAM QUESTIONS AND
SOLUTIONS RATED A+
✔✔What is the largest house payment that MR. Coulter can have with his current
income of $75,500 per year considering he just bought a car with a payment of $525 per
month? (FNMA) - ✔✔$1740 (Hint: 36% of monthly income - car payment or debts)
✔✔There is no minimum credit score needed to run/submit both HomeOne and Home
Possible through an automated underwriting system - ✔✔True
✔✔Which of the following is the correct list of charges included when calculating the
borrower's cash to close? - ✔✔Down Payment, Closing Cost, Prepaids, Discount
Points, MI paid in Cash (UPMIP/FF)
✔✔A borrower must qualify at the note rate on a temporary buydown, not the start rate.
- ✔✔True
✔✔A 2/1 buydown typically cost 2.5 discount points. Give or take .25% - ✔✔True
✔✔Which is the correct coverage requirement, monthly MI factor and monthly MI
payment based on the following scenario:
$145,000 Sales price
$20,000 down payment
5/1 ARM with 2/6 caps 30-year amortization
Agency Loan
Primary residence - ✔✔25% / .62% / 64.58
✔✔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% - ✔✔6.25
✔✔A borrower can use a credit card to pay for their required down payment. - ✔✔False
✔✔The borrower must have 5% of their own funds when putting 15% down on a
primary residence. (FNMA) - ✔✔False
✔✔Relief Refinance Program loans are designed to help homeowners who are current
on their mortgage payments but are unable to refinance due to a drop in their home
value. - ✔✔True
, ✔✔A HELOC second mortgage may or may not be fully disbursed at closing. Typically,
it has a variable interest rate with an interest only payment. There is a designated draw
period and repayment period. - ✔✔True
✔✔If a student loan payment is deferred, it does not have to be included in the
borrower's ratios (FNMA/FHLMC) - ✔✔False
✔✔Using the following information, answer the following conventional financed MI loan
question. Sales Price = 185,000 Down Payment = 10% Credit Score =635 20-year fixed
rate Owner-occupied What is the Total Loan Amount and MI Factor? -
✔✔$169,247/1.65%
✔✔What is the qualifying rate for a 7/1 ARM with a note rate of 6% and 2/6 caps? THe
fully-indexed rate is 5.98% - ✔✔8%
✔✔What is the PITI payment on a home priced at $360,000 with a 20% down payment,
5.5% interest rate over 30 years with 1.5% for annual taxes and .3% for annual
homeowners insurance? - ✔✔$2.175.23
✔✔The maximum LTV for an FHA cash-out refinance is 80% - ✔✔True
✔✔When adjusting a 1-Year ARM with 2/6 caps, the rate at the beginning of year 2 will
be determined by the Start Rate + Annual Cap or the Fully - Indexed rate whichever is
less - ✔✔True
✔✔The qualifying rate for a 7/1 ARM is 2% above the start rate - ✔✔False
✔✔Based on the following scenario, does the borrower qualify within FNMA guidelines?
PITI: $1,725 monthly Income: $7,000 Debt: $700 car payment, $375 Student loans
($2,250 balance), $170 credit card payments ($1,530 balance) - ✔✔No
✔✔After the borrower submits a complete loan application, the LE must be delivered or
placed in the mail within how many days? - ✔✔3 Business Days
✔✔DU does not consider non-occupant income as qualifying income - ✔✔True
✔✔How many days must a borrower wait to close once they receive their initial
disclosures? - ✔✔7
✔✔On an FHA loan the upfront MIP should be included when calculating cash-to-close
- ✔✔False
SOLUTIONS RATED A+
✔✔What is the largest house payment that MR. Coulter can have with his current
income of $75,500 per year considering he just bought a car with a payment of $525 per
month? (FNMA) - ✔✔$1740 (Hint: 36% of monthly income - car payment or debts)
✔✔There is no minimum credit score needed to run/submit both HomeOne and Home
Possible through an automated underwriting system - ✔✔True
✔✔Which of the following is the correct list of charges included when calculating the
borrower's cash to close? - ✔✔Down Payment, Closing Cost, Prepaids, Discount
Points, MI paid in Cash (UPMIP/FF)
✔✔A borrower must qualify at the note rate on a temporary buydown, not the start rate.
- ✔✔True
✔✔A 2/1 buydown typically cost 2.5 discount points. Give or take .25% - ✔✔True
✔✔Which is the correct coverage requirement, monthly MI factor and monthly MI
payment based on the following scenario:
$145,000 Sales price
$20,000 down payment
5/1 ARM with 2/6 caps 30-year amortization
Agency Loan
Primary residence - ✔✔25% / .62% / 64.58
✔✔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% - ✔✔6.25
✔✔A borrower can use a credit card to pay for their required down payment. - ✔✔False
✔✔The borrower must have 5% of their own funds when putting 15% down on a
primary residence. (FNMA) - ✔✔False
✔✔Relief Refinance Program loans are designed to help homeowners who are current
on their mortgage payments but are unable to refinance due to a drop in their home
value. - ✔✔True
, ✔✔A HELOC second mortgage may or may not be fully disbursed at closing. Typically,
it has a variable interest rate with an interest only payment. There is a designated draw
period and repayment period. - ✔✔True
✔✔If a student loan payment is deferred, it does not have to be included in the
borrower's ratios (FNMA/FHLMC) - ✔✔False
✔✔Using the following information, answer the following conventional financed MI loan
question. Sales Price = 185,000 Down Payment = 10% Credit Score =635 20-year fixed
rate Owner-occupied What is the Total Loan Amount and MI Factor? -
✔✔$169,247/1.65%
✔✔What is the qualifying rate for a 7/1 ARM with a note rate of 6% and 2/6 caps? THe
fully-indexed rate is 5.98% - ✔✔8%
✔✔What is the PITI payment on a home priced at $360,000 with a 20% down payment,
5.5% interest rate over 30 years with 1.5% for annual taxes and .3% for annual
homeowners insurance? - ✔✔$2.175.23
✔✔The maximum LTV for an FHA cash-out refinance is 80% - ✔✔True
✔✔When adjusting a 1-Year ARM with 2/6 caps, the rate at the beginning of year 2 will
be determined by the Start Rate + Annual Cap or the Fully - Indexed rate whichever is
less - ✔✔True
✔✔The qualifying rate for a 7/1 ARM is 2% above the start rate - ✔✔False
✔✔Based on the following scenario, does the borrower qualify within FNMA guidelines?
PITI: $1,725 monthly Income: $7,000 Debt: $700 car payment, $375 Student loans
($2,250 balance), $170 credit card payments ($1,530 balance) - ✔✔No
✔✔After the borrower submits a complete loan application, the LE must be delivered or
placed in the mail within how many days? - ✔✔3 Business Days
✔✔DU does not consider non-occupant income as qualifying income - ✔✔True
✔✔How many days must a borrower wait to close once they receive their initial
disclosures? - ✔✔7
✔✔On an FHA loan the upfront MIP should be included when calculating cash-to-close
- ✔✔False
