PSI Exam: Real Estate Calculations
(2022/2023)
Loan to Value Ratio ✔✔its the ratio of the loan amount to the property value, where value is the
lesser of either appraised value or sales price
LTVR= ✔✔(loan amount/value) x 100
each discount point costs ✔✔1% of the loan amount, and means a discount of 0.25% off the
mortgage rate
amount paid for points= ✔✔loan amount x number of points %
equity ✔✔is the amount of value or interest a homeowner has in a property less debts against the
property
equity= ✔✔value - amount owed
appreciation in value ✔✔increase equity
(2022/2023)
Loan to Value Ratio ✔✔its the ratio of the loan amount to the property value, where value is the
lesser of either appraised value or sales price
LTVR= ✔✔(loan amount/value) x 100
each discount point costs ✔✔1% of the loan amount, and means a discount of 0.25% off the
mortgage rate
amount paid for points= ✔✔loan amount x number of points %
equity ✔✔is the amount of value or interest a homeowner has in a property less debts against the
property
equity= ✔✔value - amount owed
appreciation in value ✔✔increase equity
