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Sagot :
The buyer's lenders will base the loan-to-value ratio on an amount ($300,000) which is lesser, either of the sales price or appraised value.
Loan-to-value ratio (LTV) helps in assessing the risk on lending and are used by financial institutions & other lenders to examine the risk before approving a mortgage.
- Loan-to-value ratios are calculated by dividing the loan amount by the most current appraised value of the the house.
- For instance, if appraised property value is $220,000 and the Loan amount is $200,000. Then, the Loan-to-value ratio will be 90% ($200,000/$220,000).
Learn about loan-to-value ratio here
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Answer : The buyer's lender will base the loan-to-value ratio on the appraised property value which is 300,000 dollars
LTV = 83%
Lenders and some financial institutions make use of loan-to-value ratio (LTV) to assess the risk of lending out funds for mortgage and other types of lending.
LTV ratio = MA/APV
where:
MA = Mortgage Amount
APV = Appraised Property Value
From the question, it is given that
APV = 300,000 dollars
The mortgage amount = 300,000 - 50,000
MA = 250,000 dollars
On what number will the buyer's lender base the loan-to-value ratio?
The buyer's lender will base the loan-to-value ratio on the appraised property value which is 300,000 dollars
The LTV = 250000/300000 x 100
LTV = 83%
Learn more on : https://brainly.com/question/24534303
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