Mortgage ratio is a term that denotes the percentage of an assumed market value you have in a loan on an object. This can be, for example, a mortgage, where a loan-to-value ratio of 75% corresponds to you having a loan of 75% of the market value of the home.

a) Kathrine has recently bought a detached house by raising NOK 2,670,000. in a loan from a local bank. The bank has calculated the loan-to-value ratio to be 89%. What is the estimated market value of the home?

b) Kathrine has chosen to set the term of the loan to 25 years, and the loan must be repaid according to the annuity principle with monthly installments. The first payment is one month after taking out a loan. The interest rate on the loan is 1.78% per year. What will be the term amount?

c) Over the next two years, several economists predict a rise in interest rates. As it stands now, Kathrine's annual interest rate will increase to 2.10% 1.5 years from now. What will be the new term amount if this turns out to be true?

d) In the long run, Kathrine wants to increase the mortgage by NOK 450,000. to buy a new car. The premise set by the bank is that with the new loan amount added, she must have a loan-to-value ratio of a maximum of 85%. Assume that Kathrine, after the rise in interest rates in c), continues to repay the loan with a fixed term amount. Due to inflation, the new market value of the home is assumed to be NOK 3,200,000. at the time the loan is to be increased. When can Kathrine expect to be granted the extra loan amount?