30 Questions
What year was the mortgage amended?
It was never amended
Which activity is NOT typically performed by a mortgage agent?
Arranging investing in a bond
What type of mortgage is taken out by Atif?
Second mortgage
What happens to the purchaser's repayment value if the home's value decreases to $150,000?
It decreases to $15,000
What is the term used when a person needs the proceeds of their current home's sale for their down payment?
Bridge Financing
What does 'J12' signify in compounding frequencies for interest rates?
Bi-weekly
What is the current value of Ms. House's condominium unit?
$200,000
What is the total monthly debt obligation for Ms. House, excluding the current mortgage payment?
$1,310
What is the maximum percentage of Tedros' monthly income that can be allocated towards his mortgage payments, property taxes, and other debt obligations?
44%
What is the monthly mortgage payment for Ms. House's proposed mortgage based on a TDS of 44%?
$911.67
What is the percentage of Tedros' credit score that is affected by 'Inquiries'?
25%
What document is often required by a lender to verify an applicant's employment?
Job Letter
What is the term for a person who is legally declared to be unable to pay debts?
Bankrupt
To convert a decimal to a percentage, it must be multiplied by:
100
What is the loan to value of a $455,500 mortgage on a property valued at $655,500?
69.41%
In calculating the LTV of a mortgage, the '/' character represents which of the following signs?
Division
What is the term for the ratio of debt to income expressed as a percentage?
Debt Service Ratio
What does the acronym PITH stand for?
Principal, Interest, Property Taxes, and Property Heat
What is the debt service ratio that measures the amount of shelter payments and other debt payments in comparison to the amount of gross income, expressed as a percentage?
Gross Debt Service Ratio
Which of the following items are excluded from the Total Debt Service (TDS) calculation?
Child support payments, RRSP contributions, entertainment
What is the primary purpose of the stress test in mortgage lending?
Ensure borrowers can afford higher rates
What is the total monthly payment on a $24,500 credit card debt for use in the TDS calculation?
Not enough information to calculate
What is the debt service ratio that measures the amount of shelter (housing) payments in comparison to the amount of gross income, expressed as a percentage?
Debt Service Ratio
Which of the following is NOT a component of the Total Debt Service (TDS) calculation?
Child support payments
Which term refers to clients who are self-employed?
O/O
What type of mortgage market provides financing to borrowers who have been or would be declined by prime lenders?
Sub-Prime Mortgage Lending
Which characteristic is NOT typically associated with an individual who may only qualify for a sub-prime mortgage?
Requires low LTV financing
What informs the mortgage agent of the rate charged on a product, based on factors such as LTV and credit score?
Rate Sheets
What type of lenders typically only offer mortgages through the brokerage channel?
Monoline Lenders
Which area does the mortgage agent NOT need to review and provide explanatory notes for?
Equity
Test your knowledge of mortgage and real estate concepts, including mortgage types, agents, and financing options. Evaluate your understanding of key terms and concepts in the mortgage industry.
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