Finance

What is the loan-to-value (LTV) ratio for a borrower purchasing 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 = 0.85 = 85%.

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