Finance

A buyer makes a 10% down payment on a $250,000 home. What is the loan-to-value ratio?

A10%
B80%
C90%✓ Correct
D95%

Explanation

Down payment = 10% × $250,000 = $25,000. Loan amount = $250,000 − $25,000 = $225,000. LTV = $225,000 ÷ $250,000 = 90%.

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