Real Estate Math

A Mississippi buyer puts down $35,000 on a $175,000 home. The LTV is:

A80%✓ Correct
B75%
C85%
D70%

Explanation

Loan = $175,000 − $35,000 = $140,000. LTV = $140,000 ÷ $175,000 = 80%. Using the values given ($35,000, $175,000), apply the appropriate formula.. The correct answer is 80%.. This is a common calculation on the Mississippi real estate exam.

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