Real Estate Math
A Michigan home was appraised at $240,000. The lender requires an 80% LTV. The purchase price is $250,000. What is the maximum loan amount?
A$200,000
B$192,000✓ Correct
C$210,000
D$220,000
Explanation
LTV is based on the lower of appraised value or purchase price. Lower value = $240,000.
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