Real Estate Math
A buyer makes a down payment of $45,000 on a $300,000 home in Alabama. What is the LTV ratio?
A15%
B85%✓ Correct
C80%
D75%
Explanation
Loan amount = $300,000 − $45,000 = $255,000. LTV = $255,000 ÷ $300,000 = 0.85 = 85%. Using the values given ($45,000, $300,000), apply the appropriate formula.. The correct answer is 85%.. This is a common calculation on the Alabama real estate exam.
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