For the Following Second Mortgage Application, Calculate the Percentage of Appraised

question 100

Short Answer

For the following second mortgage application, calculate the percentage of appraised value and the potential credit: $$\begin{array} { l l l l l } \text { Appraised } & \text { Lender's } & \text { Percentage of } & \text { Balance of First } & \text { Potential } \\\text { Value } & \text { Percentage } & \underline { \text { Appraised Value } } & \underline { \text { Mortgage } } & \underline { \text { Credit } } \\\$ 215,300 & 75 \% & & \$ 116,900 &\end{array}$$

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Definitions:

Outstanding Stock

The total shares of a company's stock that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares.

Unlimited Liability

A legal structure in which the owners of a business are personally liable for all the business's debts, with no limit on the amount for which they can be liable.

Mutual Agency

A principle of partnership where each partner has the authority to bind the partnership in contract with third parties.

Governmental Regulations

Laws and rules established by governments to control or influence business practices and operations.