Mortgage Broker Licensing Practice Exam · Question
A borrower approaches Sarah, a mortgage broker, about consolidating high-interest credit card debt into their mortgage. Their current mortgage balance is $250,000 at a 3.0% rate with 20 years remaining. The credit card debt totals $30,000 at 18.99%. If the combined new mortgage is $280,000 at 3.5% over 25 years, and assuming the same monthly payments from before, how much would they approximately save in monthly interest payments by consolidating?
Original monthly interest on credit card: $30,000 * (0.1899 / 12) = $474.75. Monthly interest on new mortgage attributable to $30,000: $30,000 * (0.035 / 12) =
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Question: A borrower approaches Sarah, a mortgage broker, about consolidating high-interest credit card debt into their mortgage. Their current mortgage balance is $250,000 at a 3.0% rate with 20 years remaining. The credit card debt totals $30,000 at 18.99%. If the combined new mortgage is $280,000 at 3.5% over 25 years, and assuming the same monthly payments from before, how much would they approximately save in monthly interest payments by consolidating?
Answer options:
- $385 ✅ $420
- $455
- $490
Correct answer: $420
Explanation: Original monthly interest on credit card: $30,000 * (0.1899 / 12) = $474.75. Monthly interest on new mortgage attributable to $30,000: $30,000 * (0.035 / 12) = $87.50. Approximate monthly savings = $474.75 - $87.50 = $387.25. The closest option is $385.
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Question explanations
- What is the typical time frame for a mortgage agent to provide the required disclosure statement to a client?
- Funds received from a client or investor that the brokerage holds on their behalf must be deposited into:
- Ontario mortgage agents must complete which of the following at each licence renewal?
- Which entity is responsible for licensing and regulating mortgage brokers and agents in Ontario?
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