Full-Time Loan Officer Exam
Trainer – Doug Vairo
100 Questions on Full Exam Only
Passing Grade is 70%

1.Which one of the following premiums will pay us 2.5%?
a) (– 102.5)
b) 250%
c) 125%
d) 102.5

2. On a $150,000 loan we are receiving 3 points premium from the bank in addition to the 2 points we are charging up front. After deducting $850.00 for “house fees”, what would your commission be at 30%?
a) $7,500.00
b) $6,650.00
c) $1,995.00
d) Banks don’t pay premiums on loans under $322,700.00

3. A lenders profit will usually increase at time of sale as the interest rate charged on a fixed rate loan?
a) Increases
b) Decreases
c) Stays static
d) Interest rate has nothing to do with profit

4. Interest rates on a 15yr mortgage are generally ________ a 30yr mortgage.
a) The same as
b) Higher than
c) Lower than
d) All of the above

5. What lock period will cost you (the borrower) the most in points?
a) 60 Day
b) 15 Day
c) 45 Day
d) All locks cost the same

6. 1 point is equal to _____ percent of the loan amount?
a) 100%
b) 1%
c) $1,000.00
d) It depends on the size of the loan

7. Discount points generally ________ the interest rate on the loan?
a) Lower
b) Increase
c) Discounts points are never charged in a refinance
d) Do nothing to

8. A borrower is looking to pull $50,000 cash out of her home for personal use. Her credit is excellent and her income is high. Her only mortgage is $125,000 and her home appraised for $290,000. What could prevent her from getting this loan?
a) She is a single mother
b) She is a minority
c) The home is in a bad area
d) Her DTI is 85%

9. A borrower is looking to pull $50,000 cash out of her home for personal use. Her credit is excellent and her income is high. Her only mortgage is $125,000 and her home appraised for $290,000. What is her DTI??
a) 42%
b) 60%
c) 66%
d) Not enough information to determine an answer

10. A borrower is looking to pull $50,000 cash out of her home for personal use. Her credit is excellent and her income is high. Her only mortgage is $125,000 and her home appraised for $290,000. The new loan amount is $190,750. What is her LTV after the refinance?
a) 66%
b) 28 : 36
c) 34%
d) Not enough information to determine an answer