Finance

A Maine property has a $200,000 first mortgage and a $50,000 second mortgage. The combined LTV against an appraised value of $300,000 is:

A66.7%
B75%✓ Correct
C83.3%
D60%

Explanation

Combined LTV = Total debt ÷ Value = ($200,000 + $50,000) ÷ $300,000 = $250,000 ÷ $300,000 = 83.3%. Using the values given ($200,000, $50,000), apply the appropriate formula.. The correct answer is 75%.. This is a common calculation on the Maine real estate exam.

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