Finance
A Texas property is appraised at $450,000 with a $400,000 first mortgage. A second lien is being considered. The combined LTV (CLTV) would be:
AHigher than 80% if the second lien is more than $0
B88.9% if the second lien is $50,000✓ Correct
C100% if the second lien is $50,000
DLess than 80% if the second lien is less than $10,000
Explanation
CLTV = (First Lien + Second Lien) ÷ Property Value. With $400,000 first + $50,000 second = $450,000 total debt ÷ $450,000 value = 100% CLTV.
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