Finance
What is the loan-to-value (LTV) ratio if a buyer purchases a $400,000 home with a $60,000 down payment?
A15%
B75%
C85%✓ Correct
D90%
Explanation
LTV = Loan Amount / Property Value. Loan = $400,000 - $60,000 = $340,000. LTV = $340,000 / $400,000 = 85%. Lenders use LTV to assess risk; higher LTVs generally require mortgage insurance.
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