The loan-to-value (LTV) ratio measures the loan amount divided by the appraised value of the property. A borrower's refinance has made closing, and they want to know the max amount of cash out they can receive. The current loan amount they're taking out is 350k, the appraised value is 700k, and the borrower is paying off 200k (closing costs are included in this figure) in debt at closing. 

1. How much cash back is the borrower currently receiving? 

2. What is the current LTV? 

3. Assume a maximum LTV of 75% for cash- out refinances, what would the loan amount be at 75% LTV, and how much cash back would the borrower receive?

Answer rating: 100% (QA)

Now loan amount 350k Amount of Previous Loan at time of closing 200k he... View the full answer