Josh and Skye currently have a home loan of 125000 and the c

Josh and Skye currently have a home loan of $125,000 and the current appraised value of their home is $100,000. Given that their housing payment is $1000, their consumer debt is $400, and their GMI is $3000, what would you say about Josh and Skye\'s housing situation? Their current loan to value ratio is 80% Their home is\"underwater\" Their back end ratio exceeds the recommended ratio Both B and C are true statements

Solution

Their current loan to value ratio is 80%

because loan is 125000- appraised value is 100000 = $ 25000

(25000 / 125000) * 100 = 20%

100 - 20% =80%