Florida Real Estate Exam Prep 37, Loan Qualification and Finance Math

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams.

In this episode you will learn:

- How to calculate Loan-to-Value (LTV) and its direct relationship to the down payment, using the lesser of sales price or appraised value.

- That discount points cost 1% of the loan amount, not the sales price, and are a form of prepaid interest.

- The difference between the Housing Expense Ratio (PITI / Gross Monthly Income) and the Total Obligations Ratio ((PITI + Other Debt) / Gross Monthly Income) for qualifying buyers.

- How to perform a first-month amortization calculation to separate a mortgage payment into its principal and interest components.

- To identify common exam traps, like confusing the loan amount with the sales price in financing calculations.

For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep