Real Estate Math
A buyer makes a $35,000 down payment on a $350,000 home. What is the LTV ratio?
A10%
B85%
C90%✓ Correct
D95%
Explanation
Down payment = $35,000 / $350,000 = 10%. LTV = 1 − 10% = 90%, or Loan = $315,000; LTV = $315,000 / $350,000 = 90%.
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