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Step back from the words and look at what you're trying to figure out. "Mortgage" sounds scary, "calculate" makes it sound as if you need to do math, and people have gone all over the places with real estate, substituting this for that . . .

But what are you being asked? None of that. You're not being asked to do the finicky, calculating a mortgage. Your job is to look at what's going on, figure out what data is needed, and ask the right questions to get it. Far too few people have that basic skill set: what do we need to know and how do we get it?

". . . based on his/her life expectancy and the amount of money to be borrowed by the applicant."

What information is needed to figure out someone's life expectancy? That's two questions. How much are they going to borrow? That's another. It leaves you two questions to play with.

It helps to remember that professors don't go out of their way to fail students. You tagged this with IT, development, etc. If mortgages or whatever have never been even hinted at during class the question is probably about something else, mortgages just being an example.