Real Estate Math
A property sells for $450,000. The buyer obtains an 80% LTV mortgage. What is the loan amount?
A$90,000✓ Correct
B$360,000
C$380,000
D$340,000
Explanation
Loan amount = Purchase Price × LTV = $450,000 × 80% = $360,000. Down payment = $450,000 − $360,000 = $90,000 (20%). LTV ratio is the ratio of the loan amount to the property value, and is a key underwriting metric for mortgage qualification.
Related Pennsylvania Real Estate Math Questions
- A Pittsburgh investor buys a $500,000 property with 30% down and finances the rest at 5.5% for 30 years. What is the loan amount?
- A Pennsylvania commercial tenant occupies 3,500 square feet at $24 per sq ft per year on a gross lease. What is the monthly rent?
- A home in York, PA listed at $235,000 receives an offer for 97% of list price. What is the offer amount?
- A property sells for $410,000. The buyer finances 90% and pays a 0.9% PMI rate. What is the annual PMI cost?
- A property has a net operating income of $45,000 per year. Using a capitalization rate of 7.5%, what is the estimated value?
- A Pennsylvania commercial property's annual gross rent is $200,000. Vacancies run 8% and operating expenses are $75,000. What is the NOI?
- A commercial property generates gross rental income of $120,000 annually. Operating expenses total $48,000. What is the net operating income?
- A broker charges a 5.5% commission on a sale of $460,000. The listing agent receives 60% of the broker's commission. How much does the listing agent receive?
Practice More Pennsylvania Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Pennsylvania Quiz →