How the exam uses discount point
Taking one percent of the sale price rather than the loan. Points always follow the loan.
What a question on this looks like
A buyer purchases at $250,000 with $50,000 down. What is the loan-to-value ratio?
Answer: 80% LTV is the loan divided by the value, not the down payment divided by the price.
Drill this in context at practice by topic, or browse the full glossary.