Math Questions

Question 1

What is the HER formula when finding the DTI ratio?

Answer 1

PITI/GMI

Question 2

What is the TOR formula when finding the DTI ratio?

Answer 2

PITI+Debt/GMI

Question 3

What are the formulas used in an ARM loan for the 1st adjustment?

Answer 3

S+A or M+I Choose the lower of the 2

Question 4

What is the formula used when solving for the most/max/highest the rate can go on an ARM loan?

Answer 4

S+C

Question 5

What are the formulas used in an ARM loan that is adjusting NOT for the first time?

Answer 5

Y+B or M+I Choose the lower of 2

Question 6

Discount points are calculated on what dollar value?

Answer 6

The Loan Amount

Question 7

Seller Concessions are calculated on what dollar value?

Answer 7

Purchase price or appraised value - choose the lower of the 2

Question 8

When labeling an ARM question What does S represent?

Answer 8

Start rate/intro rate/teaser rate/initial rate - where the ARM Starts See math equations worksheet

Question 9

When labeling an ARM question what does M represent?

Answer 9

Margin See math equations worksheet

Question 10

When labeling an ARM question what does I represent?

Answer 10

Index (MOST CURRENT) See math equations worksheet

Question 11

When labeling an ARM question what does A represent?

Answer 11

Initial Cap See math equations worksheet

Question 12

When labeling an ARM question what does B represent?

Answer 12

Periodic Cap See math equations worksheet

Question 13

When labeling an ARM question what does C represent?

Answer 13

Lifetime Cap See math equations worksheet

Question 14

When labeling an ARM question what does Y represent?

Answer 14

Certain Year in time - Note rate/Nominal Rate/Current Rate/Previous Adjustment See math equations worksheet

Question 15

Public Assistance is grossed up how much?

Answer 15

25% or 1.25 See math equations worksheet

Question 16

How many quarters are in a year?

Answer 16

4 - every 3 months See math equations worksheet

Question 17

If you are paid bi-weekly, how many times are you paid a year?

Answer 17

26 times See math equations worksheet

Question 18

If you are paid bi-monthly, how many times a year are you paid?

Answer 18

24 times See math equations worksheet

Question 19

When finding per diem interest, do you include the day you close on the home?

Answer 19

Yes - Example if you close on May 24th, you would have 8 days of per diem interest due at closing (31-24+1 = 8) See math equations worksheet

Question 20

When calculating per diem interest when you find the annual interest how many days do you divide it by?

Answer 20

365 See math equations worksheet

Question 21

When asked to find the UFMIP, what is that percentage?

Answer 21

1.75% See math equations worksheet

Question 22

When asked to find the UFMIP, what dollar amount is that calculated on?

Answer 22

Loan Amount See math equations worksheet

Question 23

When asked to find the MIP on a FHA loan what percentage is that?

Answer 23

.55% See math equations worksheet

Question 24

When solving for MIP on a FHA loan what is the MIP calculated on?

Answer 24

Loan Amount See math equations worksheet

Question 25

What is the equation if you are asked what is the maximum the buyer can afford?

Answer 25

Find the front, find the back, choose the lower of the 2 Choose ratio for loan type (CUVF) GMI*(DTI ratio front) = $ GMI*(DTI ratio back) - debts = $ See math equations worksheet