A borrower's fixed monthly principal-and-interest payment is $1,600, and the escrow deposit is $450. What total amount is collected for the scheduled monthly payment?
Correct Answer
C) $2,050
Why this is correct: The scheduled monthly payment for a mortgage typically includes the principal and interest (P&I) payment plus any required escrow deposits for items like taxes and insurance. Therefore, you add the two given amounts: $1,600 (P&I) + $450 (escrow) = $2,050 total scheduled payment. Why the other choices are wrong: '$1,150' is wrong because it results from subtracting the escrow from the P&I, which is not how payments are calculated. '$1,600' is wrong because it ignores the escrow deposit entirely. '$7,200' is wrong; it appears to be a random or miscalculated figure, possibly from multiplying payments incorrectly. Exam tip: When a question asks for the 'total scheduled monthly payment,' it almost always means P&I + Escrow. Don't subtract or multiply unless the facts clearly direct you to.
Why This Is the Correct Answer
Why this is correct: The scheduled monthly payment for a mortgage typically includes the principal and interest (P&I) payment plus any required escrow deposits for items like taxes and insurance. Therefore, you add the two given amounts: $1,600 (P&I) + $450 (escrow) = $2,050 total scheduled payment. Why the other choices are wrong: '$1,150' is wrong because it results from subtracting the escrow from the P&I, which is not how payments are calculated. '$1,600' is wrong because it ignores the escrow deposit entirely. '$7,200' is wrong; it appears to be a random or miscalculated figure, possibly from multiplying payments incorrectly. Exam tip: When a question asks for the 'total scheduled monthly payment,' it almost always means P&I + Escrow. Don't subtract or multiply unless the facts clearly direct you to.
More Mortgage Knowledge Questions
In a closing-readiness check, a risk reviewer sees facts tied to TILA Truth in Advertising. What should the file reflect?
In a training scenario, a trainee asks which official source controls FHA single-family origination policy. What action best follows the rule?
A compliance analyst compares the file facts with LTV Ratio Calculation during a licensing team review. Which conclusion is accurate?
A branch manager asks about a loan file because a trainee asks which official source controls FHA single-family origination policy. What should happen?
The loan team compares the file facts with ARM Cap Structures during a borrower follow-up call. Which conclusion is accurate?
A borrower has a 30-year fixed-rate mortgage with monthly principal and interest of $1,450. Property taxes increase, and taxes are paid through escrow. What can happen to the total monthly payment?
A loan has an outstanding principal balance of $240,000 and a 6% annual interest rate. Using simple monthly accrual, how much interest accrues for one month?
An annual escrow analysis for a current borrower shows a $780 shortage. One month's escrow payment is $600. The servicer elects to require repayment over the shortest installment period permitted by Regulation X for this shortage. What schedule is permitted?
What does an amortization schedule show for each scheduled payment?
A monthly principal-and-interest payment is $1,800, of which $1,250 is interest. How much principal is paid that month?
People Also Study
Federal Mortgage-Related Laws
24% of exam
Mortgage Loan Origination Activities
27% of exam
Ethics, Fraud & Consumer Protection
18% of exam
Uniform State Test Content
11% of exam
Related Study Resources
Previous Question
A fully amortizing fixed-rate payment is $1,500. The interest due for the month is $1,100, and there are no fees or escrow items in that payment. How much reduces principal?
Next Question
A bank receives an application for a consumer-purpose, closed-end loan secured by real property. The transaction is not a reverse mortgage or another excluded loan. Which disclosure framework generally applies?