EstatePass
10 Scenarios

Loan Scenario Practice Calculator

Practice mortgage math with 10 real-world loan scenarios. Calculate DTI ratios, LTV, discount points, monthly payments, and more — just like the SAFE MLO exam.

10scenarios
Hints included
Instant feedback

Your Score

0 / 10

Attempted

0

1
DTI Ratio

A borrower earns $6,000 per month gross income. The maximum allowable back-end DTI ratio is 43%. What is the maximum total monthly debt payment the borrower can have?

Formula: DTI = Total Monthly Debts / Gross Monthly Income
$
2
Loan Amount

A home has a purchase price of $350,000. The borrower is making a 20% down payment. What is the loan amount?

Formula: Loan Amount = Purchase Price - Down Payment
$
3
Monthly Payment

A loan amount is $240,000 at 6.5% for 30 years. The monthly payment factor is 6.32 per $1,000. What is the monthly principal and interest (P&I) payment?

Formula: Monthly P&I = (Loan Amount / 1,000) x Factor
$
4
Discount Points

A borrower is paying 1.5 discount points on a $300,000 loan. What is the dollar amount of the points?

Formula: 1 point = 1% of the loan amount
$
5
CLTV Ratio

A property is appraised at $400,000. The borrower has a first mortgage of $300,000 and a HELOC of $40,000. What is the combined loan-to-value (CLTV) ratio? Enter as a percentage (e.g., 85).

Formula: CLTV = (All Liens / Property Value) x 100
$
6
Front-End DTI

A borrower has gross annual income of $84,000. Their monthly housing payment (PITI) is $1,820. What is their front-end (housing) DTI ratio? Enter as a percentage (e.g., 28).

Formula: Front-end DTI = Monthly Housing Payment / Gross Monthly Income x 100
$
7
FHA Loan

A home sells for $425,000. The borrower obtains an FHA loan with the minimum 3.5% down payment. What is the base loan amount (before UFMIP)?

Formula: FHA minimum down = 3.5% of purchase price
$
8
LTV Ratio

A property is valued at $500,000 with a loan amount of $475,000. What is the loan-to-value (LTV) ratio? Enter as a percentage (e.g., 80).

Formula: LTV = (Loan Amount / Property Value) x 100
$
9
MLO Compensation

An MLO earns 1.25% commission on a $320,000 loan origination. What is the MLO's commission in dollars?

Formula: Commission = Loan Amount x Commission Rate
$
10
Interest Calculation

A borrower has a $250,000 loan at 7% interest. What is the annual interest amount? Round to the nearest dollar.

Formula: Annual Interest = Loan Amount x Interest Rate
$

Master Mortgage Math for the MLO Exam

Mortgage math questions on the SAFE MLO exam are some of the most straightforward — if you know the formulas. Unlike conceptual questions about federal laws that require memorization and interpretation, math problems have definitive answers. With consistent practice, these become easy points on exam day.

The scenarios above cover the most common calculation types: DTI ratios (front-end and back-end), LTV and CLTV ratios, discount points, monthly P&I payments using the factor method, FHA loan calculations, and MLO compensation. Practice until you can solve each type in under 60 seconds, and you will have a significant advantage on the exam.

Frequently Asked Questions

What math questions appear on the SAFE MLO exam?
The SAFE MLO exam includes questions on loan-to-value (LTV) ratios, debt-to-income (DTI) calculations, discount points, monthly payment calculations, interest computations, and down payment calculations. While you will have a basic calculator at the testing center, you need to know which formulas to apply and how to set up each calculation correctly.
How many math questions are on the MLO exam?
While the exact number varies by exam form, you can expect approximately 10-15 math-related questions on the 125-question SAFE MLO exam. These appear primarily in the Mortgage Loan Origination Activities section (25% of the exam) and General Mortgage Knowledge section (23% of the exam).
Can I use a calculator on the MLO exam?
You cannot bring your own calculator to the Prometric testing center. However, a basic on-screen calculator is provided during the exam. Practice using a simple calculator (no financial calculator functions) when studying to simulate exam conditions.
What is the most important formula for the MLO exam?
The DTI ratio calculation is arguably the most important: DTI = Total Monthly Debts / Gross Monthly Income. You should also master LTV = Loan Amount / Property Value, discount points (1 point = 1% of loan amount), and the monthly payment factor method. These formulas appear in multiple question types.
How do I calculate monthly mortgage payments for the exam?
The exam typically provides a monthly payment factor per $1,000 of loan amount. To calculate: Monthly P&I = (Loan Amount / 1,000) x Monthly Factor. For example, a $200,000 loan with a factor of 6.32 = (200,000 / 1,000) x 6.32 = $1,264/month. You do not need to memorize the amortization formula.

Explore More MLO Exam Resources

MLO Exam Cheat Sheet

Quick-reference for RESPA, TILA, ECOA & more

Mortgage Glossary

80+ mortgage acronyms and terms defined

State License Requirements

MLO license requirements for all 50 states

Free Practice Exam

120+ questions with instant scoring

MLO Exam Guide

Complete guide with study plan and tips

Exam Topics

5 exam content areas with study tips

Ready for the Full Exam?

Practice with hundreds of SAFE MLO exam questions covering all 5 topic areas. AI-powered explanations help you understand every concept.

Start Free MLO PracticeDownload the App