Real Estate Math

A Virginia property sold for $620,000. The buyer paid a 20% down payment and obtained a loan for the balance. What is the loan-to-value (LTV) ratio?

A20%
B50%
C80%✓ Correct
D100%

Explanation

With a 20% down payment, the loan amount is 80% of the purchase price. LTV = Loan Amount ÷ Value = 80%. LTV = $496,000 ÷ $620,000 = 80%.

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