Question

A house that appraised for $125,000 has a first mortgage for $62,000 and a second for $10,000. Closing costs total $4,800. Borrower qualifies for a 90% LTV, how much cash is available at closing?

Answer 1

To calculate the available cash at closing, subtract the first mortgage, second mortgage, and closing costs from the appraised value of the house. The available cash at closing is $48,200.

Step-by-step explanation:

To calculate the available cash at closing, we need to subtract the first mortgage, second mortgage, and closing costs from the appraised value of the house.

First, add together the first mortgage ($62,000), second mortgage ($10,000), and closing costs ($4,800) to get $76,800 in total costs.

Subtract the total costs from the appraised value of the house ($125,000) to get the available cash at closing, which is $48,200.