A home is appraised at $328,000 and the buyer has negotiated a purchase price of $311,000. She hopes to mortgage $303,000. What is the loan-to-value ratio to the nearest percent? Is the lender likely to approve this mortgage without the buyer being required to purchase private mortgage insurance (PMI)?
A home is appraised at $328,000 and the buyer has negotiated a purchase price of $311,000. She hopes to mortgage $303,000. What is the loan-to-value ratio to the nearest percent? Is the lender likely to approve this mortgage without the buyer being required to purchase private mortgage insurance (PMI)?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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