Numbers Flashcards
Total interest + fees percentage= what?
APR
What is the APR made of?
Total interest + fees percentage
How do you find the annual interest amount?
Loan amount x note rate
The loan amount times the note rate equals what?
Annual interest amount
How do you find the monthly interest amount?
Loan amount x the note rate divided by 12
How do you find the annual private mortgage insurance?
Loan amount times PMI factor
How do you find the monthly private mortgage insurance?
Loan amount x PMI Factor divided by 12
How do you find the LTV?
Loan amount divided by the lesser of the sale price or the appraised value.
How do you find the combined loan to value?
First loan plus the second loan divided by the lesser of the sale price or appraised value
How do you find the housing expense ratio?
Total housing expense (PITI) divided by gross monthly income
How do you find the total obligations ratio?
(Total housing expense + debt) divided by gross monthly income
What is the housing expense ratio on a conventional loan?
28%
What is the total debt to income ratio on a conventional loan?
36%
What is the housing expense ratio on an FHA loan?
31%
What is the total debt to income ratio on an FHA loan?
43%
What is the housing expense ratio on a VA loan?
Not used
What is the total debt to income ratio on a VA loan?
41%
When determining maximum mortgage amount, what three steps are taken?
- Monthly gross income x front end = maximum PITI
- (Monthly gross income x back ratio) - monthly debt = maximum PITI
- Lower of the two
And adjustable rate mortgage, how do you find the fully indexed rate?
Index plus margin
