Question

Thomas is applying to refinance his mortgage. His first mortgage is $25,000 at a 9% rate. He plans to get cash out, up to $40,000. He qualifies for an 80% LTV and his house appraises for $100,000. Shortly before closing, the title exam shows $23,000 in mechanics liens. Closing costs total $6,000. How much cash will he receive at closing?

Answer 1

$26,000

Step-by-step explanation:

Calculation for How much cash will he receive at closing

Closing cash= ($100,000* 80% - $25,000-$23,000 -$6,000)

Closing cash= ($80,000- $25,000-$23,000 -$6,000)

Closing cash=$26,000

Therefore the amount of cash he will receive at closing is $26,000