Finance
A Maryland buyer is told their loan-to-value (LTV) ratio is 90%. This means:
AThey are borrowing 10% of the purchase price
BThey are borrowing 90% of the purchase price and making a 10% down payment✓ Correct
CThe loan exceeds the property value
DTheir debt-to-income ratio is 90%
Explanation
LTV = Loan Amount ÷ Property Value. An LTV of 90% means the borrower is financing 90% and providing a 10% down payment.
Related Maryland Finance Questions
- Which federal law prohibits redlining and other geographic discrimination in mortgage lending?
- A Maryland borrower's loan application is denied. Under the Equal Credit Opportunity Act, the lender must:
- A Maryland borrower takes a 30-year fixed mortgage at 7% interest on a $350,000 loan. The monthly P&I payment is approximately $2,329. How much interest is paid in the first month?
- Maryland offers a down payment assistance program through the:
- Under Regulation Z, a Maryland lender must give borrowers a right of rescission on which type of loan?
- A Maryland seller offers to pay 3% of the purchase price toward the buyer's closing costs. On a $400,000 sale, this 'seller concession' amounts to:
- A Maryland lender charges 2 discount points on a $300,000 loan. How much will the buyer pay in points?
- What is the debt-to-income (DTI) ratio, and why is it important in mortgage underwriting?
Practice More Maryland Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Maryland Quiz →