Finance
A borrower in Virginia makes a down payment of $40,000 on a $200,000 home. What is the loan-to-value (LTV) ratio?
A20%
B75%
C80%✓ Correct
D85%
Explanation
LTV = Loan Amount ÷ Appraised Value = $160,000 ÷ $200,000 = 0.80 = 80%. The loan amount is $200,000 − $40,000 = $160,000.
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