Mortgage Loan Originator (MLO) Licensing Practice Test 2026 – Your All-in-One Guide to Exam Success!

The total monthly obligations figure of $2,289 would encompass various recurring financial commitments that Emmett and Jane must meet. This figure typically includes their housing expense, which consists of the mortgage payment (or rent), property taxes, homeowner's insurance, and possibly homeowners association (HOA) dues. Additionally, it accounts for their current credit card debt payments, which are considered part of their overall financial obligations.

Including both housing expenses and credit card payments provides a more accurate picture of an individual's financial responsibilities, which is crucial for assessing their ability to take on new debt—an important factor in mortgage underwriting. Therefore, this option reflects the most comprehensive understanding of what total monthly obligations entail.

The other options focus narrowly on either a single type of expense or do not align with the standard methodology for calculating total monthly obligations. For example, including only their car payment or solely focusing on loans for the car would not adequately capture their overall financial picture. Similarly, while including all monthly expenses including utilities might seem comprehensive, it does not reference essential debts that contribute to their creditworthiness, like mortgage or credit card payments.