Finance

What is the loan-to-value (LTV) ratio on a $320,000 property with an $80,000 down payment?

A20%
B25%
C75%✓ Correct
D80%

Explanation

Loan amount = $320,000 − $80,000 = $240,000. LTV = Loan ÷ Value = $240,000 ÷ $320,000 = 0.75 = 75%. The down payment percentage is 25%, and the LTV is 75%.

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