Loan Origination Activities - Part 6 (Free Tutorial) скачать в хорошем качестве

Loan Origination Activities - Part 6 (Free Tutorial)

Welcome to the twenty-fourth episode of the National Mortgage Exam Tutorials & Practice Tests videos. The series will be following the sequence of topics as presented in the NMLS test content outline at https://bit.ly/NMLSoutline. You can purchase The SAFE Mortgage Loan Originator National Exam Study Guide at https://amazon.com/author/patriciaoco.... It is available in kindle and paperback versions. There are hundreds of questions and two practice exams. Please take a moment to subscribe at https://bit.ly/mortgage-exam. Starting with Video #7, practice quizzes are only provided to subscribers who follow the instructions at the end of each video. Requesters' names must be public (so I can see them) and match the name of a valid subscriber. Once you receive one quiz, you may make your name private again if you wish. Names and emails are kept strictly confidential and are not shared with anyone. ************************************************************************* Mortgage Loan Origination Activities – Part 6 Video #24 Financial Calculations Periodic Interest • Monthly interest on a loan • Annual interest rate divided by 12 months = monthly interest rate, monthly interest rate x loan balance = monthly interest payment • Example: Step 1- For a 4% rate on a $200,000 loan balance, monthly interest = 4/12 = .33% monthly Step 2: .33% x 200,000 loan balance = $660 interest for that month’s loan balance..this amount of interest will be less each month as the loan balance is slowly reduced. That is called AMORTIZATION Step 3: Monthly mortgage payment (P&I) – amount of monthly interest paid = amount paid toward reducing loan balance Monthly Payments - PITI • Tip #1: if annual fee for an appropriate fee is included, divide by 12 to make it monthly • Tip #2: the problem may have charges that are not part of Principal, Interest, Taxes, and Insurance (PITI) • Example: P&I = $1500, annual property tax is $3,000, monthly HOA fee is $120, annual flood insurance is $800, and water tax is $10 monthly. What is the monthly mortgage payment? Solution: 1500 + 3,000/12 + 120 + 800/12 = 1500 + 250 + 120 + 66.67 = $1,936.67 (ignore the water tax …PITI tax refers to property tax) Down Payments • Purchase price – loan amount = down payment • Down payment % x purchase price = down payment • (100% - LTV %) x purchase price = down payment • Example for all 3 scenarios: $200,000 purchase, $180,000 loan, LTV = 90%, 10% down payment o $200,000 purchase – $180,000loan = $20,000 down payment o 10% down payment x $200,000 purchase = $20,000 down payment o (100% - 90%) x $200,000 purchase = 10% x $200,000 = $20,000 down payment ARM Adjustments Adjustable rate mortgage interest rates are fixed for a stated period of time and can then increase a stated maximum amount. Whether or not the interest rates increase depends on the index that they follow. ARMs have interest cap rates that specific maximum periodic and lifetime. Interest rates can go up or down. • A 5/1 ARM will have a fixed interest rate for 5 years and then adjust annually after that. • A 2/3/6 cap allows the loan to adjust upwards or downwards a maximum of 2% the first adjustment period, 3% more (or less) than current interest rates for subsequent adjustment periods, and a lifetime cap of 6%. • Example 1: If a 2/3/6 ARM had a starting interest rate of 5%, what is the highest it could ever go? Answer 1: 11% • Example 2: If a 2/3/6 ARM had a starting interest rate of 5%, what is the highest it could go at the first adjustment period? Answer 2: 7% • Example 3. What is the highest interest rate example 2 loan could have in the second adjustment period? Answer 3: 10% (7% current + 3% cap) Loan Origination Fee - percentage of loan amount that might be split with the mortgage company. Closing Costs/Prepaids – per diem mortgage interest If a borrower closes on February 15, the first mortgage payment is not due until April 1. You always skip a month between closing and the time the first payment is due. It’s confusing but. The first month’s payment is almost entirely interest, and that interest is applied to the skipped month. Therefore, the seller’s closing includes a payment for mortgage interest even if they already paid the monthly bill. Pre-paid Mortgage Interest is the interest from the day of closing to the first of the month. (Loan balance paydown is too negligible to consider). If a borrower closes in the first part of the month, their closing expenses will be higher. Most closings are at the end of the month for this reason. So, how do you calculate pre-paid interest? Easy. Example: Suppose there’s a $300,000 home loan with an annual interest rate of 5%. There are 10 days left in the month. What is the prepaid interest? • Step 1. Calculate daily interest percentage. 5/365 = .014% • Step 2. Calculate daily interest amount .014% x $300,000 = $42 • Step 3: Multiply daily interest by # of days left. $42 x 10 = $420 accrued interest