Final answer:
The LTV ratio for the home worth $450,000 with a $75,000 down payment is 83.33%. Using the annuity formula with the given interest rate and loan term, the monthly payment on the mortgage is calculated to be approximately $2,041.28.
Step-by-step explanation:
To calculate the Loan-to-Value (LTV) ratio, you divide the mortgage amount by the value of the property. Since the home is worth $450,000 and the down payment is $75,000, the loan amount will be $450,000 - $75,000 = $375,000. Therefore, the LTV ratio is $375,000 / $450,000 = 0.8333 or 83.33%.
The monthly payment can be calculated using the formula for an annuity, which takes into account the principal, the interest rate, and the number of periods. With a principal of $375,000, an annual interest rate of 5.125% (which is 0.42708% monthly), and a loan term of 30 years or 360 months, the monthly payment can be calculated using an amortization formula or mortgage calculator. For this scenario, the monthly payment is approximately $2,041.28.