Real Estate Math
A New Mexico investor purchases a property for $380,000, using a 25% down payment. What is the loan amount and what is the LTV?
ALoan: $285,000; LTV: 75%✓ Correct
BLoan: $285,000; LTV: 25%
CLoan: $285,000; LTV: 80%
DLoan: $95,000; LTV: 75%
Explanation
Down payment = $380,000 x 25% = $95,000. Loan = $380,000 - $95,000 = $285,000.
People Also Study
Related New Mexico Questions
- A New Mexico investor purchases a $400,000 commercial property with a 25% down payment. What is the loan amount?Real Estate Math
- A New Mexico investor purchases a rental house for $220,000 with a $44,000 down payment (20%). The monthly cash flow after all expenses and debt service is $450. What is the annual cash-on-cash return?Real Estate Math
- A New Mexico buyer makes a 3.5% down payment on an FHA loan for a $310,000 home. What is the down payment amount?Real Estate Math
- A New Mexico investor purchases a rental home for $280,000 with a 20% down payment. What is the loan amount?Real Estate Math
- What is the minimum down payment required for an FHA loan for a borrower with a credit score of 580 or higher?Finance
- Which type of loan requires no down payment and is available to eligible veterans?Finance
- Which mortgage type in New Mexico has payments that remain constant throughout the life of the loan, with the same amount applied to principal and interest each month?Finance
- A New Mexico homebuyer with excellent credit and a 20% down payment would most likely qualify for a:Finance
Key Terms to Know
Loan-to-Value Ratio (LTV)
The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
Math Concepts
Study This Topic
Practice More New Mexico Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Mexico Quiz →