Real Estate Math

A Florida buyer makes a $30,000 down payment on a $150,000 property. Their loan-to-value ratio is:

A20%
B75%
C80%✓ Correct
D25%

Explanation

Loan amount = $150,000 − $30,000 = $120,000. LTV = Loan ÷ Value = $120,000 ÷ $150,000 = 0.80 = 80%. The down payment of $30,000 is 20% of the value, meaning the loan covers 80% — the LTV is 80%. At exactly 80% LTV, PMI is generally not required for conventional loans.

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