Real Estate Math

A North Dakota home has a market value of $275,000 and an existing mortgage of $155,000. What is the loan-to-value ratio?

A43.6%
B56.4%✓ Correct
C60.2%
D65.1%

Explanation

LTV = Loan balance / Market value = $155,000 / $275,000 = 0.5636 = 56.

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