Real Estate Math

A Vermont buyer takes out a 90% mortgage on a $340,000 home. What is the loan amount?

A$296,000
B$306,000✓ Correct
C$316,000
D$326,000

Explanation

Loan amount = Purchase price × LTV = $340,000 × 90% = $306,000. To solve this, multiply the relevant values: $340,000 at 90%.. The correct answer is $306,000.. This is a common calculation on the Vermont real estate exam.

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