Finance

What is the loan-to-value (LTV) ratio on a $320,000 home with a $272,000 mortgage?

A80%
B82%
C85%✓ Correct
D87.5%

Explanation

$272,000 ÷ $320,000 = 0.85 = 85% LTV. Using the values given ($320,000, $272,000), apply the appropriate formula.. The correct answer is 85%.. This is a common calculation on the Maryland real estate exam.

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