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