Xinnix Ground School Exam 160+ Questions and Correct Answers Guaranteed A+ A 2/1 buydown typically cost 2.5 discount points. Give or take .25% - Correct Answer: True
A 3-Year ARM adjust every 3 years. - Correct Answer: true
A 3/1 ARM will have an initial fixed rate for 3 years, then adjust annually - Correct
Answer: True
A 30-year conventional loan with an 87% LTV would require 25% mortgage insurance
coverage - Correct Answer: True
A borrower can use a credit card to pay for their required down payment. - Correct
Answer: False
A borrower is considering a 1-year ARM with a note rate of 4.25% 2/6 caps and a margin of 2.5% What would the borrower's interest rate be for year 2 if the index is at 4.25%? - Correct Answer: 6.25% (higher of start rate +2% or fully indexed rate)
A borrower is considering a 1-year ARM with a note rate of 4.25%, 2/6 caps and a margin of 2.5%. What would the borrower's interest rate be for year 2 if the index is at
4.25% - Correct Answer: 6.25
A borrower must qualify at the note rate on a temporary buydown, not the start rate. -
Correct Answer: True
A borrower requesting a jumbo loan will qualify for an agency loan - Correct Answer: False
A borrower that is self-employed (Schedule C) will typically not be required to provide
YTD paystub. - Correct Answer: True
A borrower who has made an offer on a property, but has not yet provided their paystubs, bank statements and W2s would be issued which letter? - Correct Answer:
Pre-Qualification Letter (Hint: Not worth the paper its on)
A borrower's brother would like to give her money to help towards the down payment of
her new house. This would be considered______ - Correct Answer: A gift from a
relative and would require a gift letter, as well as proof that the funds have been
trCorrect Answer: ferred to the borrower's account.
A borrower's income is a factor considered when determining the principal limit
(maximum loan amount) for a reverse mortgage. - Correct Answer: False
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A fixed-rate second mortgage has the loan amount fully disbursed at closing. Monthly payments are amortized over the term of the loan. Once the balance is paid off the
mortgage is closed. - Correct Answer: True
A HELOC loan has an interest only payment - Correct Answer: True
A HELOC second mortgage may or may not be fully disbursed at closing. Typically, it has a variable interest rate with an interest only payment. There is a designated draw
period and repayment period. - Correct Answer: True
A HUD Consultant would not be required for an FHA 203(k) standard program - Correct
Answer: False
A lender must notify an applicant of action taken within 30 days after receiving a completed application concerning the lender's approval of, counteroffer to, or adverse
action on the application - Correct Answer: True
A liability not listed on the credit report will typically need to be included on the loan
application. - Correct Answer: True
A Loan Officer can locate the summary of the eligibility requirements for a loan to be sold to a specific lender/investor in the lender specs. - Correct Answer: False
A loan with an excellent credit risk, and qualifying as a jumbo loan program would
receive a DU Approve/ineligible. - Correct Answer: True
A non-arm's length trCorrect Answer: action occurs when the borrowers or any other party to the trCorrect Answer: action have a direct relationship with another party to the trCorrect Answer: action (including, but not limited to, the employer, lender, broker or
appraiser). - Correct Answer: True
A partner's percentage of ownership and earnings can be located on Schedule E part 2
of their personal tax returns - Correct Answer: False
A program description contains the summary of eligibility requirements for a loan to be
sold to a specific lender/investor - Correct Answer: True
A room addition is allowed under the FHA 203(K) limited programs. - Correct Answer: False
A simultaneous second mortgage is obtained at the same time as a first mortgage. -
Correct Answer: True
A sole proprietor's net profit or loss can be located on Schedule C of their personal tax
return - Correct Answer: true
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