Real Estate Math

A buyer purchases a property for $260,000 with a 20% down payment. What is the loan-to-value ratio?

A20%
B60%
C80%✓ Correct
D100%

Explanation

Down payment = $260,000 × 20% = $52,000. Loan = $208,000. LTV = $208,000 ÷ $260,000 = 80%. To solve this, multiply the relevant values: $260,000 at 20%.. The correct answer is 80%.. This is a common calculation on the Georgia real estate exam.

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