All categories

3 years ago

Find the loan to loan ratio for a home appraised at 583,620 that the buyer will purchase for 585,000.

Business

1 answer:

adelina 88 [10]3 years ago

6 0

I assume you mean loan to value ratio. It is a simple ratio: Loan amount divided by the value of the home.

In this instance, this would be 585,000/583,620= loan to value ratio

Most banks like to see no more than a 90% loan to value ratio. This ratio helps the bank know the risk they are incurring by lending you the money to buy the home. The lower the loan to value ratio, the easier it will be for the bank to recoup their investment, therefore usually equals a lower interest rate for the buyer.

In this instance, the loan is more than the value of the home which makes this a risky investment for the bank.

You might be interested in

Metaline Corp. uses the weighted average method for inventory costs and had the following information available for the year. Th

Archy [21]

Answer:

Total equivalent units= 4,190

Explanation:

Giving the following information:

Beginning Work in Process (30% complete, $1,600) 250 units

Ending inventory of Work in Process (70% complete) 450 units

Total units started during the year 3,700 units

<u>We need to calculate the number of units completed and transferred out.</u>

Beginning work in process= 250*0.7= 175

Units started and completed= 3,700

Ending work in process equivalent units= 450*0.7= 315

Total equivalent units= 4,190

4 0

3 years ago

Unlike manufacturers, ________ buy products from other businesses but do not significantly alter the form of the products they b

LenKa [72]

Answer: Resellers

Explanation:

Resellers buy products from other businesses but do not significantly alter the form of the products they buy before selling them.

A reseller is a type of channel partner that acts as an intermediary between companies that make, distribute or provide IT products or services and end customers, which may be businesses or consumers. A key reseller role has been order fulfillment: The customer goes to a reseller to simplify the ordering process and offload procurement and order processing tasks.

Working with a reseller can also streamline product sourcing. A business that needs to purchase multiple technology components can make those purchases through a single reseller versus approaching multiple manufacturers or service providers directly. Competitive pricing may also attract customers to resellers.

6 0

3 years ago

Read 2 more answers

Cost of debt For which capital component must you make a tax adjustment when calculating the weighted average cost of capital (W

professor190 [17]

Answer:

your dog

Explanation:

because its your dog

5 0

3 years ago

Prior to recording adjusting entries, the Office Supplies account had a $363 debit balance. A physical count of the supplies sho

drek231 [11]

Answer:

Explanation:

The adjusting entry is shown below:

Office supplies expense A/c Dr $257

To Office supplies $257

(Being adjusted entry recorded in respect of office supplies)

Since in the question it is given that, the debit balance of office supply is $363 and the physical count show $107 unused supplies which mean it is of no use. So, the actual amount of office supplies would be calculated by applying an equation which is shown below:

= Office supplies debit balance - unused office supplies

= $363 - $107

= $257

Moreover, the office supply is shown in the balance sheet under the assets account. And, to find out the correct value of the office supply we debit the expense account and credit the asset account.

7 0

3 years ago

Armando has a summer job hand-dyeing shirts that will be sold on the boardwalk. He is paid $5.00 per shirt. Armando is being pai

netineya [11]

Answer:

Pay for Performance

Explanation:

Pay for Performance is the strategy which is being referred to as the pay strategy where the evaluations or computations of the individual or the business performance have the influence on the pay amount bonuses or the increases provided to each and every employee.

So, in this case, the person is paid on the performance of the person as he will be paid on the $5 per shirt.

7 0

3 years ago