Lesson 1Risk factors for borrowers: interest-rate risk, payment shock with ARMs, foreclosure risk and mitigation strategiesLooks at main borrower risks like interest rate shifts, ARM payment jumps, and foreclosure dangers, and teaches how to design safer loans, test budgets under stress, and apply tools like reserves and counselling.
Interest-rate risk in rising rate marketsARM payment shock and cap structuresJob loss, income drops and hardship riskEarly warning signs of default behaviorLoss mitigation and workout options overviewLesson 2Qualification metrics: DTI (debt-to-income), credit score tiers, employment and income documentationCovers how lenders gauge borrower ability using DTI, credit score ranges, and job steadiness, and how to read documents to position applications, foresee conditions, and guide clients to qualify.
Front-end vs back-end DTI calculationsCredit score tiers and pricing impactsEvaluating employment stability patternsAnalyzing pay stubs and W-2 incomeDocumenting self-employed borrower incomeLesson 3Down payment, LTV (loan-to-value), PMI (private mortgage insurance) and public mortgage insurance rulesExamines how down payment amount and LTV impact pricing, approval, and mortgage insurance, comparing PMI with government insurance choices and covering cancellation rules and ways to cut coverage expenses.
Calculating LTV and CLTV accuratelyDown payment sources and verificationWhen PMI is required and typical costsPMI cancellation and revaluation pathsFHA and other public insurance basicsLesson 4Mortgage amortisation, principal vs interest, APR vs nominal rate, prepayment and refinance implicationsExplains amortisation schedules, how payments divide into principal and interest, APR versus note rate differences, and how prepayments or refinancing alter total interest paid.
Reading an amortization schedulePrincipal vs interest over loan lifeAPR vs note rate and fee impactsPrepayment strategies and savingsRefinance breakeven and cost analysisLesson 5Mortgage product types: fixed-rate, adjustable-rate (ARM), interest-only, hybrid ARMs and pros/consReviews key mortgage types like fixed-rate, ARMs, hybrids, and interest-only loans, covering their workings, best uses, and advantages/disadvantages so brokers can suggest fitting choices.
Standard fixed-rate mortgage featuresARM indexes, margins and adjustment capsHybrid ARM structures and timelinesInterest-only payment risks and usesMatching products to borrower profilesLesson 6Rate locks, points (discount vs origination), closing costs and effective rate calculationExplains rate locks, discount versus origination points, common closing costs, and effective rate calculations so borrowers can compare offers properly and dodge surprises.
Rate lock periods and extension rulesFloat-down and lock renegotiation optionsDiscount points vs origination pointsItemizing standard closing cost categoriesCalculating APR and effective borrowing costLesson 7First-time homebuyer programmes and government-backed loans: FHA, VA, USDA, and local/state assistance basicsIntroduces key first-time buyer and government-supported loans like FHA, VA, USDA, and local aid, covering eligibility, benefits, limits, and matching programmes to borrower needs.
Defining first-time homebuyer eligibilityFHA loan features, limits and costsVA loan eligibility and key advantagesUSDA rural housing basics and mapsDown payment and closing cost assistanceLesson 8How to explain mortgage options and tradeoffs in plain language for non-expert clientsTeaches turning complex mortgage terms into simple explanations with examples, visuals, and choices, helping non-experts grasp options, tradeoffs, and future effects.
Avoiding jargon and defining key termsUsing payment and cost comparison tablesExplaining fixed vs ARM tradeoffs simplyFraming risk, flexibility and savings goalsHandling common client fears and mythsLesson 9Mortgage term options (15-, 20-, 30-year) and impact on payment stability and long-term costCompares standard terms like 15-, 20-, and 30-year mortgages, showing effects on monthly payments, interest, equity growth, and steadiness to match terms with goals.
Comparing 15-, 20- and 30-year paymentsTotal interest cost by term lengthImpact of term on equity build speedShorter terms vs prepayment on 30-yearAligning term with borrower objectivesLesson 10Mortgage underwriting process, eligibility checks, required documents, and common reasons for denialDetails the full underwriting steps from application to approval, including checks, document needs, warning signs, and top denial causes so brokers can screen files well beforehand.
Stages of mortgage underwriting reviewAutomated vs manual underwriting findingsStandard income and asset documentationProperty appraisal and collateral reviewTypical red flags and denial triggers
