1. A Borrower has been at her job for over 3 years and typically works 40 hours plus overtime of 7 hours per week. Her hourly wage is 18.25 per hour. What is her qualifying income?
   1. 3,993.33
   2. 3,163.33
   3. 3,716.82
   4. None of the above
   6. 2.Borrower A has a $100,000 30-year loan at 3.75%. Borrower B has a $100,000 15-year loan at 3.75%. At the end of 10 years, who will have paid more principal?
      1. Borrower A
      2. Borrower B
      3. Both borrowers would pay the same amount of principal
      4. It is impossible to tell since either could pay off the loan sooner

3. Sam Jones is closing on a 30-year 5/1 Hybrid Adjustable-Rate Mortgage for 250,000. The starting rate on his loan is 3.75%. The Index on the loan is the 1 Year T-Bill. For the purpose of this exercise, the T-Bill is at 2.50 at the time of the loan closing; it is at 3.50 at the end of the fifth year, and at 4.50 at the end of the sixth year. The margin on the loan is 2.75. The Caps

are 3/2/6.

Using the above information, please answer each of the following questions:

1. What is the interest rate on the loan for the first 5 years? _________

2. What is the maximum rate Sam will pay over the life of the loan? _________

3.If Sam were to pay this maximum rate, what would the T Bill index have

to reach in order to require him to pay the maximum rate? _________

4. Ethel has an existing loan which she wishes to refinance to obtain a lower rate. Her home has appraised for 462,000. She has requested a new loan in the amount of 360,000 to pay off her old loan and cover all closing costs. Ethel has an existing Home Equity Loan which she wishes to keep in place for future home improvements. The home equity loan mortgage was for 75,000, with a current outstanding balance of 28,000. Please calculate the following

1. What is the Loan to Value on the new Loan? _________________

2. What is the HCLTV on the combined loans? _________________

3. What is the CLTV on the combined loans?

5.

The customer has requested a 30-year fixed rate of 3.75 % locked for 60 days for the purchase

of a new condominium as her primary residence. She wishes to make a down payment of 95,000 on a sale price of 4205,000. Her credit score is 698.

1. What is the gross price for the requested rate? ____________________

2. What are the total adjustments for the scenario? ____________________

3. What is the all-in final price? ___________________