Finance

A Georgia property appraised at $275,000 has an existing first mortgage of $180,000. The owner wants to take out a home equity loan for $50,000. What is the combined loan-to-value (CLTV) ratio?

A65.45%
B72.73%
C83.64%✓ Correct
D94.55%

Explanation

CLTV = (First Mortgage + Home Equity Loan) ÷ Appraised Value = ($180,000 + $50,000) ÷ $275,000 = $230,000 ÷ $275,000 = 83.64%.

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