Answer:
96.5%
Explanation:
Data provided in the question:
Purchase price i.e the value = $278,000
Down payment paid = 3.5%
Upfront mortgage insurance premium = $4,865
Now,
Amount of down payment = 3.5% of loan value
= 0.035 × $278,000
= $9,730
Therefore,
The loan value = value - Amount of down payment
= $278,000 - $9,730
= $268,270
Thus,
loan-to-value on the loan = [ loan value ÷ value ] × 100%
= [ $268,270 ÷ $278,000 ] × 100%
= 96.5%
