PSI Exam Real Estate Calculations
Questions and Answers3
Loan to Value Ratio - ANSWERS-its the ratio of the loan amount to the property value, where
value is the lesser of either appraised value or sales price
LTVR= - ANSWERS-(loan amount/value) x 100
each discount point costs - ANSWERS-1% of the loan amount, and means a discount of 0.25%
off the mortgage rate
amount paid for points= - ANSWERS-loan amount x number of points %
equity - ANSWERS-is the amount of value or interest a homeowner has in a property less debts
against the property
equity= - ANSWERS-value - amount owed
appreciation in value - ANSWERS-increase equity
depreciation in value - ANSWERS-reduces equity
assessed value= - ANSWERS-value x assessment ratio
annual property taxes = - ANSWERS-assessed value x tax rate
Questions and Answers3
Loan to Value Ratio - ANSWERS-its the ratio of the loan amount to the property value, where
value is the lesser of either appraised value or sales price
LTVR= - ANSWERS-(loan amount/value) x 100
each discount point costs - ANSWERS-1% of the loan amount, and means a discount of 0.25%
off the mortgage rate
amount paid for points= - ANSWERS-loan amount x number of points %
equity - ANSWERS-is the amount of value or interest a homeowner has in a property less debts
against the property
equity= - ANSWERS-value - amount owed
appreciation in value - ANSWERS-increase equity
depreciation in value - ANSWERS-reduces equity
assessed value= - ANSWERS-value x assessment ratio
annual property taxes = - ANSWERS-assessed value x tax rate
