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WorksheetsMortgage Payments
Total questions: 20
Worksheet time: 10mins
A mortgage payment can include payments related to owning the property such as taxes.
True
False
Principal & Interest payment (P&I) does NOT include any escrow.
True
False
To figure out the P&I on a loan, you only need to know the Loan Amount, Rate, and ______.
Address
Term
Origination Fee
DTI
Octane will calculate the monthly payment for you.
True
False
The P&I is the only portion of the payment the lender has control over
True
False
These items fall under this category: Property Taxes, Homeowners Insurance, Mortgage Insurance, and Flood Insurance that may be on the loan.
Closing Fees
Escrows
Lender Concessions
LTV
A borrower is required to include Escrows on their payment if the Loan To Value is above ___%
20
50
80
95
Some borrowers choose to pay their taxes and Homeowner's insurance on their own. This is known as
waiving escrows
self-escrow
a conventional loan
foregoing taxes
The escrow selection tab can be found on this screen in Octane.
Charges and Credits
Credit
Terms
Assets
_____ taxes are set by the City or County where the home is located. The tax amount can sometimes be broken into City, County, or Township.
Hazard
Escrow
Appraisal
Property
Lenders require a borrower to have this on a home so that if the home were damaged or destroyed, the collateral would need to be repaired so that the value is restored.
Hazard Insurance
Escrow Account
Mortgage Insurance
Reserves
Mortgage Insurance protects the borrower in case of a default on the loan.
True
False
Mortgage Insurance is required if a borrower puts less than __% down on a loan.
20
40
50
75
Who determines if a property is in a Flood Zone?
HUD
FEMA
VA
LO
If a property is determined to be in a flood zone, the loan will be required to carry Flood Insurance. This can NOT be escrowed.
True
False
Flood Insurance rates are determined by the federal government.
True
False
HOA fees can NOT be escrowed and have to be paid monthly.
True
False
For Condominiums, the borrower only has to get what is called an “HO-6 Policy”, which is insurance on the interior walls. Why do they only need this type of insurance as opposed to Hazard insurance?
Since the borrower does not own the land or building the HOA carries the Masters Insurance
It's generally smaller than a home
Condos are worth less than a home
There is no yard for a visitor to trip and fall in.
Find the PITIA
P&I $1,800
Taxes $500 per year
HOI $60 monthly
Flood $40 per year
This mortgage is escrowed
$1860.00
$1875.00
$1905.00
$2400.00
Property taxes are not required on conventional loans.
True
False
