Xinnix Final Exam All Possible Questions and Answers with complete solution

A borrower's income is a factor considered when determining the principal limit (maximum loan amount) for a reverse mortgage. - 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.... - 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 A borrower can use a credit card to pay for their required down payment. - Response: False Feedback: See Course 4, Lesson 3 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 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%? - Response: 6.25% Feedback: See Course 2, Lesson 1 A borrower paid semi-monthly and a borrower paid bi-weekly have the same number of pay periods per year - False A borrower purchased a home on January 15th and is moving in on March 2nd. How many days from purchase to move in? (For non-leap years only) - 46 days A borrower requesting a jumbo loan will qualify for an agency loan - False A borrower requesting a jumbo loan will qualify for an agency loan. - Response: False Feedback: See Course 4, Lesson 1A borrower that is self-employed (Schedule C) will typically not be required to provide a YTD paystub. - Response: True Feedback: See Course 8, Lesson 5 A borrower that is self-employed (Schedule C) will typically not be required to provide a YTD paystub. - True A borrower who has made an offer on a property, but has not yet provided their paystubs, bank statements and W2s would be issued which letter? - Response: Pre-Qualification Letter Feedback: See Course 9, Lesson 4. A fixed-rate second mortgage has the loan amount fully disbursed at closing. Monthly payments are amortized over the term of the loan. Once the balance is paid off the mortgage is closed. - Response: True Feedback: See Course 3, Lesson 5 A HELOC loan has an interest only payment - 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. - False A Loan Officer would perform all of the following functions EXCEPT: - Response: Approve the loan Feedback: See Course 8, Lesson 1 A non-arm's length transaction occurs when the borrowers or any other party to the transaction have a direct relationship with another party to the transaction (including, but not limited to, the employer, lender, broker, or appraiser). - True A partner's percentage of ownership and earnings can be located on Schedule E part II of their personal tax returns. - FalseA partner's percentage of ownership and earnings can be located on Schedule E part II of their personal tax returns. - Response: False Feedback: See Course 8, Lesson 5 A 3-Year ARM adjusts every 3 years - True A program description contains the summary of eligibility requirements for a loan to be sold to a specific lender/investor. - True A room addition is allowed under the FHA 203(k) Limited program. - False