Mortgage Math 1

Question 1

Simple Interest Rates

Answer 1

Simple Interest Rates= Principal x Interest x Duration(in years)

Question 2

Interest Only Payments

Answer 2

Loan Amount x Interest Rate= Annual Interest

Annual Interest/12= Periodic I/O payments

Question 3

Monthly Property tax Calculations

Answer 3

Annual Property Taxes/ 12

Question 4

Monthly Hazard Insurance

Answer 4

Annual Hazard Insurance/12

Question 5

monthly mortgage Insurance

Answer 5

Loan amount x % of Priv Mortg Ins/Mortg Ins Premium= Annual PMI/MIP

Annual PMI/MIP /12= Monthly PMI/MIP

Question 6

Housing DTI

Answer 6

Housing DTI= (PITI + Housing Expenses)/ GMI

Question 7

Total DTI

Answer 7

Total DTI= Total Monthly Exp/ GMI

Question 8

Total DTI

Answer 8

Total DTI= total monthly expenses/ GMI

Fannie/ Freddie loans- 5% of total revolving debt must b included in monthly debt if np mpnthly min payment is listed

Question 9

Weekly Income

Answer 9

Base Hourly x Hours Worked= Weekly income

Question 10

monthly income

Answer 10

(weekly income x weeks worked)/12

Question 11

Overtime income

Answer 11

OT rate x OT hours

Question 12

weekly income w OT

Answer 12

weekly income + weekly OT

Question 13

Monthly salary

Answer 13

annual income/12

Question 14

weekly salary

Answer 14

paid every 2 weeks

(weekly salary x 52) /12= GMI

weekly= fifty two pay periods

Question 15

BI-weekly

Answer 15

paid every Other week

(bi-weeklyx26)/12= GMI

Bi weekly= twenty six pay periods

Question 16

Semi Monthly

Answer 16

paid 2x a month

(semi-monthly salary x 24)/12= GMI

semi monthly= twenty four pay periods

Question 17

BI-monthly salary

Answer 17

Paid two times per month

Semi-monthly x 6)/12= GMI

BI-monthly= six pay periods

Question 18

Semi Annualy

Answer 18

pad 2x a year

(semi annually salary x 2)/12

Question 19

Down Payment

Answer 19

Down payment Calc#1
appraised value/purchase price - loan amount= down payment

Down payment Calc#2
appraised value/purchase price x % down= down payment

Question 20

Loan to Value

Answer 20

Loan amount/appraised value/purchase price

Question 21

Combine Loan To Value(TLTV)

Answer 21

1st loan amount + All loan amount= total loan amount

Total Loan Value/ appraisal value/purchase price= CLTV/TLTV

Question 22

High Combined Loan to Value (High Total Loan to Value)

Answer 22

all loan balances(on close ended loans)+ Credit limit on HELOCs/ appraisal value/ Purchase Price= HCLTV/HTLTV