FinanceIntermediateDelaware Exam
What is the loan-to-value (LTV) ratio if a property is appraised at $300,000 and the borrower makes a $45,000 down payment?
A80%
B82%
C85%Correct
D90%
Why 85% Is Correct
Answer C: 85%
LTV = Loan Amount ÷ Appraised Value. Loan = $300,000 − $45,000 = $255,000.
Exam Tip: Finance
Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.
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