Question

If the mortgage loan is 80% of the appraised value of a house, and the interest rate of 8% amounts to $460 interest for the first month, then what is the appraised value of the house?

Answer 1

The appraised value of the house is after calculating interest and the value is $86,250.

What is appraised value?

A qualified appraiser or valuer's assessment of the assessed value of the real property is what is meant by an appraised value or mortgage valuation. It is typically utilized as a pre-qualification criterion and risk-based pricing component in connection with a financial institution's issuance of mortgage loans.

Calculation of appraised value of the house:

1. First, calculate the yearly interest. $5,520 in interest total every year ($460 x 12).
2. Take a loan for $69,000 at an interest rate of.08 on $5,520.
3. Next, subtract $86,250 from $69,000 to get the appraised value.

Hence, the total appraisal value is $86,250.

Learn more about appraised value :

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