Real Estate Math
A buyer's earnest money is $7,500 on a $250,000 contract. The loan-to-value ratio is 80%. How much additional cash must the buyer bring to closing (before closing costs)?
A$42,500✓ Correct
B$50,000
C$36,125
D$57,500
Explanation
Down payment = 20% × $250,000 = $50,000. Additional cash needed = $50,000 − $7,500 (already paid as earnest money) = $42,500.
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