Real Estate Math

An Oklahoma buyer's loan-to-value ratio is 80% and the purchase price is $300,000. What is the down payment?

A$240,000✓ Correct
B$60,000
C$30,000
D$24,000

Explanation

LTV of 80% means the loan is 80% of value, so the down payment is 20%. Down payment = $300,000 × 20% = $60,000. Loan amount = $300,000 × 80% = $240,000.

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