What Happens When an Appraisal Changes the Maximum LTV?

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What Happens When an Appraisal Changes the Maximum LTV?

When an appraisal changes the maximum loan-to-value ratio, the mortgage may need to be restructured.

A lower appraisal can affect:

Maximum loan amount
Required down payment
Cash needed at closing
Mortgage insurance
Interest-rate pricing
Seller contributions
Loan-program eligibility
Debt-to-income ratio
Closing costs
Refinance proceeds
Cash available from a cash-out refinance

The appraisal does not directly change the loan program’s published maximum LTV.

Instead, it changes the property value used to calculate the actual LTV.

If the new calculation exceeds the program’s limit, the lender must adjust the transaction.

Possible solutions include:

Reducing the loan amount
Increasing the down payment
Renegotiating the purchase price
Changing loan programs
Challenging the appraisal
Modifying mortgage insurance
Reducing cash-out proceeds
Canceling the transaction under an applicable contract provision

The effect depends on whether the transaction is a purchase or refinance and how close the original structure was to the program’s maximum.

What Is Loan-to-Value?

Loan-to-value, or LTV, compares the first mortgage amount with the property value recognized by the loan program.

The basic calculation is:

Loan amount ÷ property value = LTV

For example:

Loan amount: $400,000
Property value: $500,000
LTV: 80%

The lender uses LTV to measure how much of the property’s recognized value is being financed.

A higher LTV generally means:

A smaller down payment
Less borrower equity
Greater lender exposure
Potential mortgage insurance
Different pricing
More restrictive eligibility requirements

A lower LTV generally means more borrower equity and less collateral exposure for the lender.

Maximum LTV Versus Actual LTV

These are related but different concepts.

Maximum LTV is the highest ratio permitted for a specific transaction.

Actual LTV is the ratio produced by the loan amount and recognized property value.

The maximum can depend on:

Loan program
Purchase or refinance
Occupancy
Property type
Number of units
Credit profile
Loan purpose
Mortgage product
First-time buyer status
Whether subordinate financing exists

The appraisal determines one of the numbers used in the calculation.

If the appraisal changes, the actual LTV changes unless the loan amount changes too.

How LTV Is Calculated on a Purchase

For a standard purchase transaction, the lender generally uses the lower of:

Purchase price
Current appraised value

Fannie Mae’s current LTV guidance states that purchase LTV is calculated by dividing the original loan amount by the property value, with property value defined as the lower of the sales price or current appraised value.

This creates two important outcomes:

If the appraisal is lower than the purchase price, the lower appraisal normally controls the LTV calculation.
If the appraisal is higher than the purchase price, the higher appraisal normally does not increase the value used for the standard purchase LTV calculation.

The lender does not ordinarily give the buyer additional borrowing power simply because the appraisal exceeds the contract price.

How LTV Is Calculated on a Refinance

For a standard refinance, the lender generally divides the loan amount by the current appraised value.

For example:

Proposed refinance loan: $400,000
Appraised value: $500,000
LTV: 80%

If the appraisal falls to $475,000:

Proposed loan: $400,000
Appraised value: $475,000
LTV: approximately 84.21%

The refinance may still qualify, but its:

Pricing
Mortgage insurance
Cash-out proceeds
Program eligibility
Required reserves

could change.

How a Lower Appraisal Changes the LTV

Assume a buyer agrees to purchase a home for $500,000.

The original mortgage plan is:

Purchase price: $500,000
Down payment: $100,000
Loan amount: $400,000
Planned LTV: 80%

The appraisal comes in at $480,000.

The new LTV is calculated as:

Loan amount: $400,000
Recognized value: $480,000
Actual LTV: approximately 83.33%

If the buyer wants or needs to remain at 80% LTV, the maximum loan becomes:

$480,000 × 80% = $384,000

The buyer now needs to address the $16,000 reduction in loan amount.

Possible solutions include:

Increase the down payment by $16,000
Renegotiate the purchase price
Accept an LTV above 80% and add mortgage insurance, if eligible
Challenge the appraisal
Change loan programs

The purchase price does not automatically change because the appraisal is lower.

The purchase contract determines whether the buyer and seller can renegotiate or cancel.

The Appraisal Gap

The difference between the purchase price and appraised value is often called an appraisal gap.

Using the previous example:

Purchase price: $500,000
Appraised value: $480,000
Appraisal gap: $20,000

But the appraisal gap and additional cash requirement are not always the same.

If the buyer originally planned an 80% LTV loan, the loan decreases by only 80% of the $20,000 value difference:

Original loan: $400,000
Revised 80% loan: $384,000
Loan reduction: $16,000

The buyer was already contributing the other 20% through the planned down payment.

This distinction is important when calculating the actual change in cash to close.

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Maximum LTV Example With a 5% Down Payment

Assume:

Purchase price: $500,000
Planned down payment: 5%
Planned loan amount: $475,000
Planned LTV: 95%

The appraisal comes in at $480,000.

If the loan remains $475,000, the new LTV is approximately:

$475,000 ÷ $480,000 = 98.96%

That exceeds a 95% maximum.

To remain at 95% LTV:

$480,000 × 95% = $456,000 maximum loan

The buyer would need to cover:

$500,000 purchase price
Minus $456,000 loan
Equals $44,000 total down payment

The original down payment was $25,000.

The appraisal increases the buyer’s required down payment by $19,000 unless the price or loan structure changes.

The appraisal gap is $20,000, but the additional cash requirement is $19,000 because the lender can still finance 95% of the lower recognized value.

A Higher Appraisal Usually Does Not Reduce the Purchase Down Payment

Assume:

Purchase price: $500,000
Appraised value: $525,000
Planned down payment: 5%
Loan amount: $475,000

The lender generally calculates the purchase LTV using the lower $500,000 purchase price.

The LTV remains:

$475,000 ÷ $500,000 = 95%

The appraisal does not normally allow the buyer to borrow 95% of $525,000.

It does not eliminate the agreed down payment.

The buyer may have immediate theoretical equity, but purchase financing remains based on the applicable lower-of-cost-or-value calculation.

The Maximum Loan Amount May Decrease

When the appraisal reduces recognized property value, the lender may have to lower the loan amount to remain within program limits.

The basic calculation is:

Appraised value × maximum LTV = maximum loan amount

For example:

Appraised value: $600,000
Maximum LTV: 90%
Maximum loan: $540,000

If the original loan request was $558,000, the loan may need to decrease by $18,000.

The buyer must then determine how to cover the difference.

Cash to Close May Increase

A lower appraisal can increase the buyer’s cash requirement through:

Reduced loan proceeds
Larger down payment
Changed mortgage-insurance structure
Reduced lender credits
Changed pricing
Unusable seller contributions
Additional reserves
Different program requirements

The buyer should request an updated Loan Estimate or closing worksheet after the lender restructures the loan.

Do not assume the cash increase equals the entire appraisal gap.

The actual result depends on the revised loan amount and program.

Mortgage Insurance May Be Added

A buyer may initially structure a conventional loan at 80% LTV to avoid private mortgage insurance.

If a lower appraisal raises the actual LTV above 80%, the buyer may have two primary choices:

Reduce the loan amount to return to 80%
Accept a higher LTV and obtain mortgage insurance, if eligible

Mortgage insurance can affect:

Monthly payment
Cash due at closing
Loan approval
Pricing
Debt-to-income ratio

The mortgage insurer may also apply its own eligibility requirements.

A small value change near the 80% threshold can therefore have a meaningful effect.

Mortgage Insurance Coverage May Change

If mortgage insurance was already part of the transaction, the required coverage level or premium may change when the LTV moves into a different range.

For example, a loan moving from one LTV band to another may change:

Monthly borrower-paid mortgage insurance
Single-premium mortgage insurance
Lender-paid mortgage insurance pricing
Required coverage percentage
Eligibility with a specific mortgage insurer

The lender must rerun the mortgage-insurance structure using the revised value and LTV.

Interest-Rate Pricing May Change

Conventional mortgage pricing can depend partly on LTV.

Fannie Mae notes that loan-level price adjustments may apply based on factors including LTV and representative credit score.

A value change can move the loan into another pricing bracket.

That may affect:

Interest rate
Discount points
Lender credit
Break-even period
Cash to close

For example, moving from 75% LTV to above 75% may produce different pricing depending on the credit score, property type, occupancy, and transaction.

The lender should reprice the actual revised structure rather than assume the original terms remain available.

A Lower Appraisal Can Affect Debt-to-Income Ratio

A lower appraisal does not directly change the borrower’s income or debts.

But it can indirectly affect debt-to-income ratio when:

Mortgage insurance is added
The interest rate changes
The loan program changes
The buyer uses a different mortgage structure
A subordinate loan is added
Monthly housing expenses increase

A borrower who was near the maximum qualifying ratio may no longer qualify after the payment changes.

This is one reason appraisal review is part of final underwriting rather than merely a property-value exercise.

Seller Contributions May Need to Be Recalculated

Loan programs limit seller contributions based on factors that may include:

Occupancy
Loan program
LTV
Down payment
Property type
Use of the funds

If the appraisal changes the LTV category, the maximum permitted seller contribution may change.

Even when the contribution remains within the percentage limit, a lower loan amount or changed closing-cost structure may leave part of the credit unusable.

Seller credits cannot normally be used to:

Provide cash back beyond permitted amounts
Replace a required down payment
Cover an appraisal gap directly
Exceed actual eligible costs

The lender should recalculate the available contribution after restructuring the transaction.

Seller Credits Do Not Cover the Appraisal Gap

A seller credit and a price reduction are not the same.

A seller credit helps pay eligible closing costs and prepaid items.

A price reduction lowers the amount the buyer is contractually obligated to pay.

If the appraisal is below the purchase price, a seller credit does not generally change the lower value used for LTV.

For example:

Purchase price: $500,000
Appraised value: $480,000
Seller credit: $10,000

The value used for purchase LTV remains $480,000.

The credit may reduce eligible closing expenses, but it does not increase the maximum loan based on the appraisal.

A Price Reduction Can Change the Buyer’s Cash Requirement

Assume:

Original purchase price: $500,000
Appraised value: $480,000
Maximum LTV: 95%
Maximum loan: $456,000

If the seller reduces the price to $480,000:

New price: $480,000
Appraised value: $480,000
Loan at 95%: $456,000
Down payment: $24,000

The buyer may return close to the original 5% down-payment structure.

If the seller reduces the price only to $490,000:

Maximum loan remains $456,000
Buyer’s required contribution becomes $34,000

Partial price reductions can still help even when they do not eliminate the complete appraisal gap.

Appraisal-Gap Guarantees

A buyer may have agreed to cover some or all of an appraisal shortage.

For example, the contract may state that the buyer will contribute up to $20,000 above appraised value.

This contract promise does not increase the lender’s recognized value.

The lender still calculates LTV using the applicable lower value.

The buyer must provide the additional funds from an acceptable, documented source.

The lender may need to verify that the buyer still has:

Sufficient closing funds
Required reserves
Acceptable asset documentation
No undisclosed borrowing
Adequate post-closing liquidity

An appraisal-gap agreement is a contract strategy—not a mortgage valuation method.

Gift Funds May Help Cover the Increased Requirement

Depending on the loan program and transaction, eligible gift funds may help cover:

Additional down payment
Closing costs
Reserves, when permitted

The lender must document:

Acceptable donor
Gift letter
Transfer of funds
Donor ability, when required
No repayment obligation

Gift eligibility varies by occupancy, property type, and loan program.

The buyer should not arrange a gift until the lender confirms how it can be used.

Borrowed Funds Cannot Be Hidden

A buyer may be tempted to use:

A personal loan
Credit cards
An undocumented family loan
A business advance
A newly opened line of credit

to cover an appraisal-related cash increase.

This can affect:

Debt-to-income ratio
Asset eligibility
Credit
Loan approval
Required disclosures
Automated underwriting

All borrowed funds and new liabilities must be disclosed.

An undisclosed loan can jeopardize final approval.

Combined Loan-to-Value May Also Change

LTV measures the first mortgage.

Combined loan-to-value, or CLTV, considers the first mortgage plus certain subordinate financing.

The basic calculation is:

First mortgage + subordinate loan balances ÷ property value = CLTV

If the appraisal falls, both the LTV and CLTV rise unless the loan balances change.

This can affect transactions involving:

Down payment assistance
Community seconds
HELOCs
Closed-end second mortgages
Piggyback loans
Existing subordinate financing on a refinance

The first mortgage may satisfy its individual limit while the combined financing exceeds the maximum CLTV.

Home Equity Combined Loan-to-Value

Home equity combined loan-to-value, or HCLTV, can account for the full available credit limit of certain HELOCs rather than only the amount initially drawn.

A lower appraisal can cause the HCLTV to exceed program requirements even when:

The first mortgage remains acceptable
The HELOC balance is low
The borrower does not plan to use the full line immediately

The lender must calculate LTV, CLTV, and HCLTV correctly for the transaction.

Down Payment Assistance Can Be Affected

Down payment assistance programs may impose their own:

Maximum LTV
Maximum CLTV
Minimum borrower contribution
Purchase-price limits
Appraisal requirements
Loan-amount restrictions

A lower appraisal can create a structure in which:

The first mortgage decreases
Assistance exceeds an allowed percentage
CLTV becomes too high
The borrower must contribute additional funds
The assistance amount must be reduced
The transaction no longer qualifies

The lender and assistance provider may both need to approve the revised structure.

Conventional Loan Effects

A lower appraisal on a conventional loan may change:

Maximum conforming loan amount
LTV
Mortgage insurance
Pricing
Seller-contribution limits
Automated underwriting findings
Reserve requirements
Loan eligibility

The loan should generally be resubmitted through the applicable automated underwriting system using the final appraised value and revised terms.

A prior approval based on estimated value is not the final decision.

FHA Loan Effects

FHA purchase financing generally considers the applicable relationship among:

Purchase price
Appraised value
Eligible transaction costs
Statutory and program limits

A lower appraisal can reduce the FHA base loan amount.

The buyer may need to:

Increase the cash contribution
Renegotiate the sales price
Challenge the appraisal through the permitted process
Restructure allowable costs
Cancel under applicable contract protections

FHA mortgage insurance does not eliminate the need for an acceptable appraisal and maximum mortgage calculation.

VA Loan Effects

VA loans may provide eligible borrowers with 100% financing, but that financing remains tied to the property’s reasonable value and applicable acquisition-cost rules.

If the purchase price exceeds the VA-established reasonable value, the veteran may need to:

Pay the difference
Renegotiate the sales price
Request a reconsideration of value
Exercise applicable contract protections
Change the transaction

The veteran generally cannot finance an unsupported appraisal gap merely because VA permits no-down-payment financing.

The buyer should also preserve sufficient funds for closing costs and reserves.

USDA Loan Effects

USDA financing may permit high leverage, but the property must still support the loan under applicable value and program calculations.

A lower appraisal can affect:

Maximum base loan
Financed eligible costs
Cash required
Seller contributions
Program eligibility
Debt-to-income ratio

The lender must restructure the loan using the final acceptable value.

Jumbo Loan Effects

Jumbo lenders often divide pricing and eligibility into specific LTV categories.

A relatively small appraisal change may move a loan from:

70% to above 70%
75% to above 75%
80% to above 80%

That can trigger:

A different interest rate
Higher reserve requirements
Reduced maximum loan amount
A second appraisal
Additional appraisal review
Investor ineligibility
A larger down payment

Jumbo guidelines vary significantly by investor.

The lender may be able to compare multiple jumbo programs after the appraisal is completed.

Non-QM Loan Effects

Non-QM programs also use LTV limits.

A lower appraisal can affect:

Maximum loan amount
Rate
Points
Prepayment-penalty options on eligible investment loans
Reserve requirements
Debt-service coverage
Borrower contribution
Property eligibility

Flexible income documentation does not eliminate collateral limits.

Investment Property Effects

Investment-property loans generally apply more conservative LTV limits than comparable primary-residence loans.

A lower appraisal can affect:

Required down payment
Cash flow
DSCR
Interest rate
Prepaid reserves
Maximum cash out
Seller contributions
Closing feasibility

If the monthly principal, interest, taxes, insurance, and association dues change, the property’s debt-service coverage may also change.

Refinance Transactions

In a refinance, a lower appraisal directly reduces recognized property value.

The result may include:

Higher LTV
Lower available loan amount
Added mortgage insurance
Worse pricing
Reduced debt payoff
Reduced cash out
Ineligibility for the intended program
Insufficient proceeds to cover closing costs
Failure to meet seasoning or equity requirements

Unlike a purchase, there is no seller with whom to renegotiate the property price.

The homeowner must change the loan or challenge the valuation.

Rate-and-Term Refinance Example

Assume:

Existing mortgage payoff: $400,000
Closing costs and prepaid items: $10,000
Proposed new loan: $410,000
Estimated value: $525,000
Estimated LTV: approximately 78.10%

The appraisal comes in at $500,000.

The revised LTV becomes:

$410,000 ÷ $500,000 = 82%

If the program or borrower strategy requires 80% LTV, the maximum loan would be:

$500,000 × 80% = $400,000

That may not be enough to cover both the payoff and costs.

Possible solutions include:

Bringing cash to closing
Accepting mortgage insurance
Changing the rate or pricing
Reducing financed costs
Canceling the refinance

Cash-Out Refinance Example

Assume:

Proposed loan amount: $450,000
Estimated property value: $600,000
Expected LTV: 75%

The appraisal comes in at $560,000.

The revised LTV is:

$450,000 ÷ $560,000 = approximately 80.36%

If the program allows a maximum 75% LTV, the revised maximum loan becomes:

$560,000 × 75% = $420,000

The available loan amount decreases by $30,000.

After paying the existing mortgage and closing costs, the borrower’s net cash proceeds may fall by approximately the same amount.

Debt-Consolidation Refinances

A homeowner may plan to pay off:

Credit cards
Auto loans
Personal loans
Tax obligations
Other debts

with refinance proceeds.

A lower appraisal may leave insufficient equity to pay every planned obligation.

That can create a second problem:

If the debts cannot be paid, they remain in the borrower’s debt-to-income ratio.

The borrower may then lose approval because:

Cash-out proceeds decreased
Monthly debts remain
The revised mortgage payment changed
The debt-to-income ratio increased

The lender may need to reprioritize which debts are paid or evaluate another structure.

Interest Rate Locks and Appraisal Changes

A rate lock generally protects pricing for a defined loan structure.

If the appraisal changes the LTV, the locked pricing may need adjustment.

The lender may need to:

Reprice the loan
Apply a different LTV adjustment
Change mortgage insurance
Reduce lender credits
Increase discount points
Extend the lock while restructuring
Move to a different loan program

A rate lock does not guarantee pricing for materially different loan characteristics.

Automated Underwriting Must Be Updated

The appraisal value must be entered into the lender’s system when available.

Fannie Mae’s Desktop Underwriter uses the sales price and appraised value entered by the lender to calculate LTV, CLTV, and HCLTV.

When the final appraisal differs from the estimated value, the lender generally needs to:

Update the value
Update the loan amount
Update subordinate financing
Update mortgage insurance
Update assets
Resubmit the loan
Review new underwriting findings

An earlier automated approval based on the estimated value may change after resubmission.

Conditional Approval Can Change

A borrower may already have conditional mortgage approval when the appraisal is received.

That approval remains subject to acceptable property and loan terms.

A lower value can create new conditions involving:

Revised loan amount
Additional assets
Mortgage insurance
Updated disclosures
Resubmission to automated underwriting
Revised reserves
Contract amendment
Seller contribution
Rate-lock pricing

This does not necessarily mean the borrower was improperly preapproved.

The appraisal is a property-related variable that cannot be finalized before the property is evaluated.

What If the Appraisal Is Only Slightly Low?

Even a small value difference can matter when the loan is near a threshold.

For example, a $5,000 value reduction could move the loan:

Above 80% LTV
Above a maximum 95% LTV
Into another pricing bracket
Above a mortgage-insurance threshold
Above a jumbo investor limit
Above a maximum CLTV
Outside a down payment assistance rule

The percentage change matters more than the dollar amount by itself.

What If the Appraisal Is Significantly Low?

A significant shortage may require a broader decision.

The parties may consider:

Reconsideration of value
Purchase-price renegotiation
Larger down payment
Loan-program change
Portfolio financing
Seller financing
Contract cancellation
Selecting another property

The buyer should evaluate not only whether the extra cash is available, but whether paying substantially above appraised value fits the overall financial strategy.

Reconsideration of Value

If the appraisal appears factually incorrect or unsupported, the lender may permit a reconsideration-of-value request.

Useful evidence may include:

Better comparable sales
Incorrect square footage
Incorrect lot size
Missing renovations
Incorrect condition
Incorrect bedroom or bathroom count
Unsupported adjustments
Omitted property features
Mischaracterized concessions
Market data not considered

The request should identify specific appraisal issues.

It should not simply state that the contract price is higher.

See Reconsideration of Value: Challenging a Low Appraisal for the complete process.

The Appraisal Cannot Simply Be Ignored

The lender cannot use the contract price as the value merely because:

The buyer loves the home
Multiple offers were received
The buyer agreed to waive appraisal protections
The seller refuses to reduce the price
The borrower has excellent credit
The buyer can afford the payment

The lender must use an acceptable property value under the loan program.

Contract risk and mortgage eligibility are separate.

Questions to Ask After a Low Appraisal

When an appraisal changes maximum LTV, ask:

What value is the lender using?
What is the revised actual LTV?
What is the program’s maximum LTV?
What is the new maximum loan amount?
How much additional cash is required?
Will mortgage insurance be added or changed?
Does the interest rate or pricing change?
Are seller contributions still permitted?
Will automated underwriting need to be rerun?
Do reserve requirements change?
Can the purchase price be renegotiated?
Is a reconsideration of value appropriate?
Would another loan program help?
Does the contract contain an appraisal contingency?
What happens to the rate lock?
When must the buyer make a decision?

The lender should provide revised numbers—not merely state that the appraisal was low.

Common Misconceptions

“The Lender Will Finance the Purchase Price Because That Is What We Agreed to Pay.”

The purchase contract does not establish the property value used for mortgage LTV.

“If the Appraisal Is $20,000 Low, I Always Need $20,000 More.”

Not necessarily. The additional requirement depends on the maximum LTV and revised loan amount.

“A Higher Appraisal Lets Me Reduce My Down Payment.”

Purchase LTV is generally based on the lower of purchase price or appraised value.

“A Seller Credit Can Cover the Appraisal Gap.”

A credit may cover eligible closing costs, but it does not replace required equity or increase recognized value.

“Mortgage Insurance Fixes Every Low Appraisal.”

Mortgage insurance may permit an LTV above 80%, but the revised ratio still must remain within program and insurer limits.

“The Rate Lock Prevents Any Pricing Change.”

Pricing can change when the loan’s LTV or other material characteristics change.

“Excellent Credit Overrides Maximum LTV.”

Strong credit helps qualification and pricing but does not eliminate collateral limits.

“The Appraisal Only Affects the Property.”

It can also change payment, assets, debt-to-income ratio, underwriting findings, and final loan approval.

Real Lender Perspective

When an appraisal changes maximum LTV, the correct response is not simply:

“You need to bring more money.”

The lender should rebuild the entire transaction.

That means reviewing:

Maximum loan amount
Revised LTV
Mortgage insurance
Interest-rate pricing
Seller contributions
Cash to close
Reserves
Debt-to-income ratio
Automated underwriting
Contract options
Alternative loan programs

Sometimes the best solution is a larger down payment.

Sometimes adding mortgage insurance preserves liquidity.

Sometimes the seller reduces the price.

Sometimes a reconsideration of value is justified.

Sometimes the appraisal reveals that the original purchase price is not adequately supported.

The strongest mortgage strategy evaluates every available option before asking the buyer to contribute additional cash.

Who This Guide Is For

This guide may be especially helpful for:

Texas homebuyers
First-time buyers
Buyers using low-down-payment financing
Conventional borrowers
FHA borrowers
Veterans using VA financing
USDA borrowers
Jumbo borrowers
Investment-property buyers
Homeowners refinancing
Borrowers completing cash-out refinances
Buyers using down payment assistance
Buyers with appraisal-gap agreements
Real estate agents
Sellers responding to a low appraisal

Final Thoughts

When an appraisal changes maximum LTV, the lender must recalculate the mortgage using the final acceptable property value.

On a purchase, the value used for LTV is generally the lower of:

Purchase price
Appraised value

On a refinance, the current appraised value generally controls the calculation.

A lower appraisal can change:

Maximum loan amount
Down payment
Cash to close
Mortgage insurance
Pricing
Seller contributions
Debt-to-income ratio
Program eligibility
Refinance proceeds

A higher purchase appraisal generally does not allow the buyer to finance more than the applicable percentage of the contract price.

The right response is to calculate the complete revised structure.

Before contributing more cash, determine whether the transaction can be improved through price renegotiation, mortgage insurance, a different loan program, a reconsideration of value, or another financing strategy.

The appraisal may change the numbers.

It does not automatically end the transaction.