Real Estate Math
A lender requires a maximum 80% LTV on a conventional loan. The appraised value is $350,000 and the purchase price is $340,000. What is the maximum loan amount?
A$272,000✓ Correct
B$280,000
C$252,000
D$288,000
Explanation
LTV is based on the LESSER of appraised value or purchase price. Lesser of $350,000 and $340,000 = $340,000. Maximum loan = $340,000 × 0.80 = $272,000.
Related North Carolina Real Estate Math Questions
- A NC investor buys a rental property for $240,000 and receives $1,600/month rent. The annual gross rent multiplier (GRM) is:
- A Raleigh-Durham area home sells for $625,000. What is the NC excise tax?
- An investment property in NC sells for $750,000. The selling broker earns 2.5% and the listing broker earns 2.5% commission. What is each broker's total commission?
- A property in NC has a capitalization rate of 8.5% and an NOI of $68,000. The estimated value is:
- A property has a potential gross income of $60,000, vacancy rate of 5%, and operating expenses of $18,000. What is the NOI?
- A commercial property in NC generates annual NOI of $120,000. Similar properties sell at a 6.5% cap rate. What is the estimated market value?
- A property in Durham sells for $395,000. The NC excise tax paid by the seller is:
- A rectangular commercial building measures 80 feet by 120 feet. What is the building area in square feet?
Practice More North Carolina Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free North Carolina Quiz →