Finance

A NH bank appraises a property at $290,000. The buyer offered $305,000. If the lender will loan 80% of the lower of appraised value or purchase price, what is the maximum loan amount?

A$232,000✓ Correct
B$244,000
C$252,000
D$280,000

Explanation

Lender uses the lower of appraised value ($290,000) or purchase price ($305,000) = $290,000. Maximum loan = 80% × $290,000 = $232,000.

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