Real Estate Math
A Massachusetts borrower owes $380,000 on a mortgage. The property is worth $425,000. What is the loan-to-value (LTV) ratio?
A89.4%✓ Correct
B111.8%
C82.3%
D85.0%
Explanation
LTV = Loan ÷ Value = $380,000 ÷ $425,000 = 0.8941 ≈ 89.4%. Using the values given ($380,000, $425,000), apply the appropriate formula.. The correct answer is 89.4%.. This is a common calculation on the Massachusetts real estate exam.
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