I would like to ask someone who is knowledgeable in home loan and mortgage financing.
Consider a home with an appraisal value of $ 400k.
Let the down payment on this mortgage be $80k (i.e. 20% of $400k).
Then, I can borrow $320k for a fixed or float loan over a certain duration (e.g. 15, 20, 30yr).
- My question: Does a loan officer at a bank view the down payment as the appraisal value of the home minus the present value of the resale value of the depreciated home that the homeowner can pledge? Is this present value essentially the mortgage payment?
The way I view the mortgage financing is as follows: when I am convincing the loan officer to lend me the money to finance my home purchase, the officer is essentially assessing how much he or she would be able to borrow against the pledgeable portion of the estate. Is this a reasonable way to view down payment and mortgage in home financing?