William understands conventional mortgages, he is however not sure how to do the calculation. To date, he has saved $55,000 as a down payment on a condo which he is ready to make an offer on a property valued at $300,000. Is the following True or False? William needs an additional $5,000 for him to have a conventional mortgage.
Question 2Select one:
True
False
True
Calculation:
Down Payment = $55,000
Property Value = $300,000
Amount needed for conventional mortgage = Property Value - Down Payment
Amount needed for conventional mortgage = $300,000 - $55,000
Amount needed for conventional mortgage = $245,000
In order for William to have a conventional mortgage, he would need an additional $245,000 - $55,000 = $190,000.