Xinnix Ground School Mortgage Final
Exam
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
All of the following documents must be provided by the builder to the mortgage
company on an FHA new construction loan prior to the loan being cleared to
close EXCEPT: - CORRECT ANSWER-Appraisal Certificate
MUST BE PROVIDED: Certificate of Occupancy, Builder's 1-Year Warranty,
Insulation Certificate
, After the borrower submits a complete loan application, the LE must be delivered
or placed in the mail within how many days? - CORRECT ANSWER-3 business
days
Which document is not necessary for the builder provide to the mortgage
company on an FHA new construction loan prior to the loan being cleared to
close? - CORRECT ANSWER-Appraisal Certificate
Ms. Armstrong is paid an hourly wage of $17.50. She receives time and a half for
overtime (more than 40 hours per week) and has been averaging 50 hours every
week, since starting with the company five years ago. Her current paystub from
7/15 of this year shows a YTD gross income of $26,260. Her W2 from last year
shows $48,048 and the year before shows $46,116.
What is the monthly base income and monthly overtime income that would be
entered on the 1003? (Overtime not guaranteed) - CORRECT ANSWER-$3033/$915
Choose the correct relationship between the Name of the Report and mortgage
interest rate tendencies. - CORRECT ANSWER-When the CPI goes UP, Rates tend
to go UP
When the GDP goes DOWN, rates tend to go DOWN
When the Unemployment Rate goes UP, rates tend to go DOWN
The following are types of renovation mortgages: - CORRECT ANSWER-FNMA
HomeStyle, FHA 203(k)
Unemployment income can not be used as qualifying income - CORRECT
ANSWER-False
What is the largest house payment Ms. Joyce can have with her current income of
$92,650 per year considering she has a $525 car payment and $0 in credit cards?
(FHLMC) - CORRECT ANSWER-$2,161.83
What is the maximum seller contribution allowed for an investment property at
80% LTV? (FNMA/FHLMC) - CORRECT ANSWER-2%
Depreciation should be added to a borrower's income who owns several
investment properties. - CORRECT ANSWER-True
Based on a loan amount of $225,000, how many years will it take your customer
to break-even if they choose to pay 1.5% in discount points to secure an interest
rate of 6.00% as opposed to zero points for a 6.25% rate? - CORRECT ANSWER-
7.73 years
Exam
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
All of the following documents must be provided by the builder to the mortgage
company on an FHA new construction loan prior to the loan being cleared to
close EXCEPT: - CORRECT ANSWER-Appraisal Certificate
MUST BE PROVIDED: Certificate of Occupancy, Builder's 1-Year Warranty,
Insulation Certificate
, After the borrower submits a complete loan application, the LE must be delivered
or placed in the mail within how many days? - CORRECT ANSWER-3 business
days
Which document is not necessary for the builder provide to the mortgage
company on an FHA new construction loan prior to the loan being cleared to
close? - CORRECT ANSWER-Appraisal Certificate
Ms. Armstrong is paid an hourly wage of $17.50. She receives time and a half for
overtime (more than 40 hours per week) and has been averaging 50 hours every
week, since starting with the company five years ago. Her current paystub from
7/15 of this year shows a YTD gross income of $26,260. Her W2 from last year
shows $48,048 and the year before shows $46,116.
What is the monthly base income and monthly overtime income that would be
entered on the 1003? (Overtime not guaranteed) - CORRECT ANSWER-$3033/$915
Choose the correct relationship between the Name of the Report and mortgage
interest rate tendencies. - CORRECT ANSWER-When the CPI goes UP, Rates tend
to go UP
When the GDP goes DOWN, rates tend to go DOWN
When the Unemployment Rate goes UP, rates tend to go DOWN
The following are types of renovation mortgages: - CORRECT ANSWER-FNMA
HomeStyle, FHA 203(k)
Unemployment income can not be used as qualifying income - CORRECT
ANSWER-False
What is the largest house payment Ms. Joyce can have with her current income of
$92,650 per year considering she has a $525 car payment and $0 in credit cards?
(FHLMC) - CORRECT ANSWER-$2,161.83
What is the maximum seller contribution allowed for an investment property at
80% LTV? (FNMA/FHLMC) - CORRECT ANSWER-2%
Depreciation should be added to a borrower's income who owns several
investment properties. - CORRECT ANSWER-True
Based on a loan amount of $225,000, how many years will it take your customer
to break-even if they choose to pay 1.5% in discount points to secure an interest
rate of 6.00% as opposed to zero points for a 6.25% rate? - CORRECT ANSWER-
7.73 years
