Finance

A Kentucky buyer is purchasing a $220,000 home with a $44,000 down payment. What is the loan-to-value ratio?

A20%
B80%✓ Correct
C75%
D25%

Explanation

LTV = Loan amount / Property value. Loan amount = $220,000 minus $44,000 = $176,000. LTV = $176,000 / $220,000 = 0.80 = 80%. The buyer put 20% down, resulting in an 80% LTV.

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