An Ohio buyer purchases a home for $250,000 with a $50,000 down payment. What is the loan-to-value (LTV) ratio?
Correct Answer
C) 80%
Loan amount = $250,000 − $50,000 = $200,000. LTV = $200,000 ÷ $250,000 = 0.80 = 80%.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The secondary mortgage market is where existing mortgage loans are bought and sold between lenders, investors, and government-sponsored enterprises (GSEs) like Fannie Mae, Freddie Mac, and Ginnie Mae.
TILA is a federal law that requires lenders to disclose the true cost of credit to borrowers, including the annual percentage rate (APR), total finance charges, and loan terms. It is implemented by Regulation Z.
A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
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In Ohio, the conveyance fee is paid at the time of:
- → In Ohio, the conveyance fee statement (DTE 100 form) must be filed with the county auditor when transferring real property. This form requires disclosure of:
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Previous Question
When calculating the LTV (loan-to-value) ratio for an Ohio mortgage, all of the following are used in the calculation EXCEPT:
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An Ohio buyer obtains a conventional mortgage with a 90% LTV. The lender requires private mortgage insurance (PMI). Under federal law, the borrower may request cancellation of PMI when the LTV reaches: