Question: Reed Davis has $84,000 for a down payment on a home and has identified a property that can be purchased for $386,000. The appraised value of the property is $395,000. What is the loan-to-value ratio ?
2. Emily Harrington has $1,675 total fixed monthly expenses and gross monthly income of $4,975. What is the debt-to income ratio she would use in purchasing a home?