Mortgage Math and USC: The NMLS Success Guide

Many students struggle with the math portion of the SAFE exam, but the secret is in the formulas. By mastering a few core calculations—LTV, DTI, and PITI—you can secure easy points on the test. Additionally, we cover the **Uniform State Content (USC)**, which tests your knowledge of state-level regulatory authority.

Essential Mortgage Math Formulas

• LTV (Loan-to-Value): [Loan Amount ÷ Appraised Value] or [Loan Amount ÷ Purchase Price] (Whichever is lower).
• DTI (Debt-to-Income): [Total Monthly Debt ÷ Gross Monthly Income].
• Interest-Only Payment: [Loan Amount × Interest Rate] ÷ 12.
• Discount Points: 1 Point = 1% of the Loan Amount.

The Uniform State Content (USC)

The USC was created to eliminate the need for multiple state-specific exams. It tests your knowledge of the Model State Law, including the power of state commissioners to issue subpoenas, conduct examinations, and levy fines.

Practice: Calculating PITI

To calculate a full monthly payment (PITI), you must add the monthly principal and interest to the monthly property taxes and the monthly homeowners insurance (and PMI if applicable).