A Texas homestead valued at $800,000 has a first mortgage of $480,000. The homeowner takes the maximum home equity loan. The lender charges the maximum 3% fee. What is the total fee amount?
Correct Answer
C) $4,800
Max total liens = $800,000 × 0.80 = $640,000. Max HEL = $640,000 − $480,000 = $160,000. Fee = $160,000 × 0.03 = $4,800.
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Closing costs are the fees and expenses paid by the buyer and seller at the closing of a real estate transaction, beyond the purchase price. They typically range from 2-5% of the purchase price.
A conventional loan is a mortgage that is not insured or guaranteed by a government agency such as the FHA, VA, or USDA. It is originated and funded by private lenders and may be conforming or non-conforming.
The debt-to-income ratio (DTI) compares a borrower's monthly debt obligations to their gross monthly income. It is used by lenders to determine how much mortgage a borrower can afford.
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A Texas veteran uses the VLB home loan program to purchase a home for $250,000. The VLB charges 1 origination point. How much does the veteran pay in origination fees?
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A Texas reverse mortgage borrower has a homestead valued at $300,000 with no existing liens. Under the 80% LTV rule, the lender offers a reverse mortgage equal to 50% of the maximum allowed. How much will the borrower receive?