A borrower has a mortgage with mortgage insurance and wants to refinance to eliminate it. The new loan rate is 0.125% higher, but removing MI saves $200/month. How should this be evaluated for tangible net benefit?
Correct Answer
D) The net effect of the rate increase and MI elimination must be calculated
The tangible net benefit analysis must consider the total cost impact, including both the slight rate increase and the mortgage insurance elimination, to determine the net financial benefit to the borrower.
Why This Is the Correct Answer
The tangible net benefit analysis must consider the total cost impact, including both the slight rate increase and the mortgage insurance elimination, to determine the net financial benefit to the borrower.
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A self-employed borrower shows consistent monthly deposits of $12,000 in their business account but only claims $8,000 monthly income on their loan application. What should the MLO do?
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A borrower receives a DU recommendation of 'Approve/Eligible' for a conventional loan, but the MLO notices the borrower's employment gap of 8 months ending 3 months ago. Should the MLO be concerned about this gap affecting the loan approval?