SAFE MLO Financial Calculations question: gross monthly income

SAFE MLOFinancial Calculations

A borrower is paid $2,150 every two weeks. What is his gross monthly income?

A $4,658.33
B $4,837.50
C $9,316.67
D $55,900.00

Show the answer and explanation

Answer: A. $4,658.33

Biweekly pay is received 26 times a year: $2,150 x 26 = $55,900; $55,900 / 12 = $4,658.33 a month. $4,837.50 uses 27 pay periods; $55,900.00 is the annual figure; $9,316.67 treats it as weekly pay. Source: Fannie Mae Selling Guide, Chapter B3-3 (Income Assessment) (income calculation) (as at 11 Oct 2026).

Common mistake

Using the wrong number of pay periods, or forgetting to divide the annual figure by 12.

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Original study material mapped to the public NMLS Content Outline; not a real test question.Not affiliated with or endorsed by NMLS, CSBS or SRR. Verify figures and rules against current guidance before relying on them.