Real Estate Math
A Connecticut buyer has $85,000 for a down payment. The maximum home they can afford with a 20% down requirement is:
A$340,000
B$385,000
C$400,000
D$425,000✓ Correct
Explanation
Max home price = Down payment ÷ Down payment percentage = $85,000 ÷ 0.20 = $425,000.
People Also Study
Related Connecticut Questions
- A buyer has $120,000 for a down payment. If lenders require a minimum 25% down for investment properties, what is the maximum property price the buyer can afford?Real Estate Math
- An appraiser values a Connecticut home at $520,000 for a purchase loan. The purchase price is $540,000. The lender will base the loan on:Property Valuation
- A Connecticut home buyer is approved for a maximum monthly payment of $2,800 (PITI). Taxes are $425/month and insurance is $125/month. What is the maximum P&I payment available for the mortgage?Real Estate Math
- A Connecticut buyer needs to take out a loan for 80% of the purchase price. The purchase price is $472,500. What is the required down payment?Real Estate Math
- A Connecticut seller listed their home for $499,000 and accepted an offer for $484,030. What percentage below the list price did the buyer pay?Real Estate Math
- A Connecticut property is purchased for $380,000 with a 10% down payment. The buyer obtains a conventional loan for the balance. What is the loan amount?Finance
- An FHA-insured mortgage in Connecticut requires a minimum down payment of:Finance
- What is the loan-to-value (LTV) ratio for a borrower purchasing a $400,000 home with a $60,000 down payment?Finance
Key Terms to Know
Loan-to-Value Ratio (LTV)
The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Math Concepts
Study This Topic
Practice More Connecticut Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Connecticut Quiz →