NMLS General Flashcards
Rate Calculation
Rate = Interest/Principal
Quarterly Interest for a loan if $10,000 at 8%?
Principle x Rate = Interest/4
Non conventional loan Front and back Ratio for VA Loan ratio for front and back is
43%
Non conventional loan Front and back Ratio for FHA Loan ratio for front and back is
31%/43%
Non conventional loan Front and back Ratio for FNMA/FHLMC Loan ratio for front and back is
28%, 36%
PITI (Back End Ratio) Calculation
Back Ratio 36% x Gross Monthly Income = Max PITI and other monthly obligations
Back Ratio or Total Obligations to Income Ratio Calculation
Back End Ratio = PITI + LT Obligation/Gross Monthly Income
Front Ratio Expense Calculation
Front Ratio = PITI/Gross Monthly Income
What does a 5/1 Hybrid ARM mean?
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
What are several Types if Hybrid Calculations?
There are several types of hybrids, such as 3/1, 5/1, 7/1 or 10/1 ARMs.
PITI (Front End) Calculation
Front PITI = Front Ratio 28% x Gross Monthly Income
HCLTV Calculation
HCLTV = 1st Lien + HELOC limit/lesser of appraised value
CLTV Calculation
All loan amt (Loan 1 and 2)/Lesser of Sales Appraised Value
LTV Calculation
LTV = Loan Amount (1st Lien) / Lesser of Sales Price or Appraised Value
Fully Indexed Rate
Margin+Payment Rate =