Finance
A Michigan home is appraised at $180,000 and listed at $190,000. A buyer offers $185,000 with a conventional loan requiring 80% LTV. The maximum loan amount the lender will approve is:
A$148,000
B$144,000✓ Correct
C$152,000
D$156,000
Explanation
The lender uses the lower of appraised value or purchase price for LTV. Lower value is $180,000.
Related Michigan Finance Questions
- An adjustable-rate mortgage (ARM) typically starts with:
- In Michigan, a VA home loan benefit is available to:
- In Michigan, a fully indexed rate on an ARM equals:
- The Equal Credit Opportunity Act (ECOA) prohibits lenders from discriminating based on all of the following EXCEPT:
- In Michigan, a 'prepayment penalty' in a mortgage means:
- A Michigan borrower's debt-to-income (DTI) ratio is important to lenders because it measures:
- In Michigan, the Truth-in-Lending Act (TILA) requires lenders to disclose the loan's:
- In Michigan, an 'interest-only loan' means the borrower:
Practice More Michigan Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Michigan Quiz →