Real Estate Math

What is the LTV ratio if the loan is $168,000 and the appraised value is $210,000?

A75%
B80%✓ Correct
C85%
D90%

Explanation

LTV = Loan ÷ Appraised Value = $168,000 ÷ $210,000 = 0.80 = 80%. Using the values given ($168,000, $210,000), apply the appropriate formula.. The correct answer is 80%.. This is a common calculation on the Arkansas real estate exam.

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