Real Estate Math

A NH buyer puts 20% down on a $425,000 home and finances the balance. What is the loan-to-value ratio?

A80%✓ Correct
B75%
C85%
D20%

Explanation

Down payment = 20% × $425,000 = $85,000. Loan amount = $425,000 − $85,000 = $340,000.

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