Real Estate Math
A NJ buyer makes a $25,000 down payment on a $280,000 home. What is the loan-to-value (LTV) ratio?
A8.9%
B91.1%✓ Correct
C10.7%
D89.3%
Explanation
Loan amount = $280,000 – $25,000 = $255,000. LTV = $255,000 ÷ $280,000 = 0.9107 = 91.1%. Using the values given ($25,000, $280,000), apply the appropriate formula.. The correct answer is 91.1%.. This is a common calculation on the New Jersey real estate exam.
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