Norma put down a 5% deposit on a $400,000 house and obtained an 80% LTV mortgage. How much must she bring to closing after considering the seller's contribution and her closing costs?

To determine how much Norma must bring to closing, we need to calculate several figures: the purchase price, the deposit, the loan amount, and any additional costs or contributions that affect her final cash required at closing.

1. Calculate the Deposit: Norma’s deposit is 5% of the purchase price of the house. With a purchase price of $400,000, the deposit would be:

[

(5% \times 400,000) = 20,000

]

2. Calculate the Loan Amount: An 80% LTV (Loan-to-Value) mortgage means that the loan will cover 80% of the home’s value. The loan amount would be:

[

(80% \times 400,000) = 320,000

]

3. Calculate the Amount to be Brought to Closing: Generally, the buyer would pay the amount of the deposit plus any additional costs, minus any seller contributions to closing costs.

If we assume the total closing costs (including any seller contributions) required are around $8,000, Norma's total cash required would be calculated as:

[

Deposit + Closing