Real Estate Math
A Bozeman property worth $520,000 is mortgaged for $390,000. What is the homeowner's equity and LTV ratio?
AEquity: $130,000; LTV: 70%
BEquity: $130,000; LTV: 75%
CEquity: $390,000; LTV: 75%✓ Correct
DEquity: $130,000; LTV: 25%
Explanation
Equity = $520,000 − $390,000 = $130,000. LTV = $390,000 ÷ $520,000 = 75%.
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