Traditional Mortgage Products

This course is part of a series of self-guided online courses that will provide a detailed analysis of mortgage banking rules and regulations. The objective of this course is to provide an overview of traditional mortgage products.


The course covers the following objectives:

Eligibility Requirements for Traditional Mortgages
- Understand how to calculate Loan to Value (LTV), Combined or Total Loan to Value (LTV/TLTV) and Home Equity Combined or Home Equity Total Loan to Value (HCLTV or HTLTV).
- Identify the Types of Refinance Loans
- Define the different types of loans: Limited Cash out Loans, Cash Out Loans, Streamline Refinance Loans.
- Working with Subordinate Financing
- Define an open-end and a closed end subordinate financed loan.

Purchasing a Home Using a First and a Second Mortgage

- Understand the different situations in which a second mortgage loan can be beneficial

- List the three categories of subordinate financing on a refinance

Understanding Private Mortgage Insurance

- Identify the factors that determine the PMI premium

- Know how to calculate a monthly PMI premium

- Review Lender Funded PMI

Working with Temporary Buydowns

- Define the different types of buydowns

- Know how to structure a buydown