NMLS General Flashcards

1
Q

Rate Calculation

A

Rate = Interest/Principal

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2
Q

Quarterly Interest for a loan if $10,000 at 8%?

A

Principle x Rate = Interest/4

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3
Q

Non conventional loan Front and back Ratio for VA Loan ratio for front and back is

A

43%

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4
Q

Non conventional loan Front and back Ratio for FHA Loan ratio for front and back is

A

31%/43%

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5
Q

Non conventional loan Front and back Ratio for FNMA/FHLMC Loan ratio for front and back is

A

28%, 36%

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6
Q

PITI (Back End Ratio) Calculation

A

Back Ratio 36% x Gross Monthly Income = Max PITI and other monthly obligations

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7
Q

Back Ratio or Total Obligations to Income Ratio Calculation

A

Back End Ratio = PITI + LT Obligation/Gross Monthly Income

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8
Q

Front Ratio Expense Calculation

A

Front Ratio = PITI/Gross Monthly Income

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9
Q

What does a 5/1 Hybrid ARM mean?

A

In a 5/1 Hybrid, A/B Hybrid - the 5 interest remains the same for five years and the 1 is the the frequency in years that the interest is adjusted after the 5 years

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10
Q

What are several Types if Hybrid Calculations?

A

There are several types of hybrids, such as 3/1, 5/1, 7/1 or 10/1 ARMs.

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11
Q

PITI (Front End) Calculation

A

Front PITI = Front Ratio 28% x Gross Monthly Income

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12
Q

HCLTV Calculation

A

HCLTV = 1st Lien + HELOC limit/lesser of appraised value

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13
Q

CLTV Calculation

A

All loan amt (Loan 1 and 2)/Lesser of Sales Appraised Value

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14
Q

LTV Calculation

A

LTV = Loan Amount (1st Lien) / Lesser of Sales Price or Appraised Value

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15
Q

Fully Indexed Rate

A

Margin+Payment Rate =

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16
Q

Define ARM Adjustment and meaning of A/B/C%

A

1/2/3% (A/B/C)
A= Years till first adjustment
B = percent increase max per adjustment
C= Max cap increase for all adjustments

17
Q

1-year ARM Is written as

A

1/2/3% (A/B/C)

18
Q

Per Diem Calculation

A

Principal × APR/ 360 or 365 days × number of days till end of month including the current day = Interim Interest

19
Q

Rate Calculation

A

Rate = Interest/Principal