Real Estate Math

A Kansas homeowner has a $240,000 mortgage balance and the current appraised value is $320,000. What is the current LTV ratio?

A66.7%
B75%✓ Correct
C80%
D83.3%

Explanation

LTV = Loan Balance ÷ Appraised Value = $240,000 ÷ $320,000 = 0.75 = 75%.

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