Unit 13 Practice Exam

A man’s monthly debt payments are

Mortgage payment (PITI)     $1,450

Private mtg. insurance (PMI)      42

Credit card payments               412

Student loan payments            900

Total debt payments            $2,804

If his monthly income is $7,380, what is his debt-to-income ratio?

A borrower obtains a $300,000, 4 percent mortgage with monthly payments of $1,432.25. How much of the second monthly payment will apply to interest?

Assume that a borrower has an adjustable rate mortgage tied to the 1-year treasury bill average rate (index) with a margin of 2.5%. If the index is 2.5%, the calculated mortgage rate will be

A balloon payment marks the end of a

Which is a government insurance agency?

A family has gross monthly income of $9,500. Their payments of principal, interest, taxes, insurance are $2,650. Their other debts are $1,200. Can they qualify for an FHA loan based on these figures?

Which FHA program insures condominium loans?

The Veterans Administration charges borrowers

The most important factor in a FICO credit score is

The general term used to describe mortgage lenders that accept checking and savings accounts are called

When persons put their funds into a depository, such as a bank or savings association, the depository then lends the money to borrowers who need the funds. When those persons remove their funds to buy property or stocks, the process is called

The government-owned entity that guarantees mortgage-backed securities issued by Fannie Mae and Freddie Mac is

The Act that Prohibits discrimination in loan underwriting based on sex, marital status, race, religion, age, or national origin is the

What does RESPA NOT require to be furnished to the borrower by the lender at the time of loan application (or within three days of the loan application)?

RESPA requires that the lender