Real Estate Math
A Montana property owner wants to refinance their home valued at $380,000. Their current mortgage balance is $210,000. A lender will allow up to 80% LTV cash-out refinance. How much cash can the owner receive (before closing costs)?
A$94,000✓ Correct
B$114,000
C$170,000
D$304,000
Explanation
Maximum loan at 80% LTV = $380,000 x 0.80 = $304,000. Cash out = Maximum loan - Existing balance = $304,000 - $210,000 = $94,000 (before closing costs).
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