Real Estate Math

A property sold for $350,000. The buyer paid a 20% down payment. What is the loan-to-value ratio (LTV)?

A20%
B80%✓ Correct
C75%
D85%

Explanation

Down payment = $350,000 × 20% = $70,000. Loan amount = $350,000 − $70,000 = $280,000. LTV = $280,000 ÷ $350,000 = 80%.

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