Terminology and Instructions: LTV - Loan to Value Points 1% of the mortagge amount NOTE: A morlgage will be based on the lower of the sales prion or the appraisal. As an Example: Sale price is $60,000. Buyor obtairing a 80\% LTV mortgage. $60,00090%=$54,000 mortgage. If bank charges 1 point, then $54,0001%= $540 for points. Please keep in mind that we start with 100%. If a buyer is obtaining a 90% LTV, that means that are getting a loan that is 90% of the total, leaving 10% as the buyer's down payment. So, a buyer obtaining an 85% LTV on a $100,000 property, wil have a mortgage of $85,000 and a down payment of $15,000. $100,00085%=$85,000,$100,00015%=$15,000 As a check - $85,000+$15,000=$100,000 1. A contract for the purchase of real estate shows a sates priog of $75,000. The appraised value came in at $72,000. Keeping in mind that the lender will base their mortgage smount off the lower of the apprased value or the purchase price, on which amount will down paymort will be based? The down payment will be based on the appraised value which is $72,000 2. A purchase agreement shows the selling prioe to be $125,000. The appraisal report lists a market value of $135,000. What amourt wil the down payment bo based on? 3. The purchase price of a preperty is 395,000 . The appruisal comes in at $95,000. If the purchaser is obtaining a 90\%. loen to value motgage, a) what is the morgage amount? b) what is the down payment amount? a) b) 4. If the lender grants you an 80 percent ban to-value rebo on a properfy valuod at $150,000, how much cash will you owe at cloeing for the down payment? 5. Veing the inforration troim question 4. What wit be the amoure of your morososes 6. A point is ossertialy prepaid intereat ond is is of the loan amount if the bomower is cotaring a 00\% LTV riorthage on a intes price of $126,000 and the berik charges 1% point, ahat arrount will the borroceer pay for the pointar? 7. It the bank gives you a 75 percert loantovation rain in a propery wabed axpedy paid Si 0,005 in eamest moner