Real Estate Math
An Indiana property has $85,000 in equity. The property is worth $340,000. What is the LTV ratio?
A20%
B25%
C75%✓ Correct
D80%
Explanation
Equity = Value − Loan. Loan = $340,000 − $85,000 = $255,000. LTV = $255,000 ÷ $340,000 = 75%. Using the values given ($85,000, $340,000), apply the appropriate formula.. The correct answer is 75%.. This is a common calculation on the Indiana real estate exam.
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