Finance
A Washington buyer obtains a conventional loan with a 20% down payment on a $550,000 home. What is the loan-to-value (LTV) ratio?
A20%
B80%✓ Correct
C85%
D90%
Explanation
LTV = Loan Amount ÷ Purchase Price. Down payment = 20% × $550,000 = $110,000.
People Also Study
Related Washington Questions
- A buyer in Washington purchases a home for $480,000 with a 15% down payment. What is the loan amount?Real Estate Math
- Which type of loan program is specifically designed to help Washington veterans purchase homes with no down payment?Finance
- A Washington buyer puts 5% down on a $410,000 home. The lender charges 0.8% monthly PMI on the loan. What is the monthly PMI amount?Real Estate Math
- A Washington buyer's closing costs are 3% of the purchase price. The home costs $490,000 with 10% down. What are the approximate closing costs?Real Estate Math
- In Washington, a buyer who makes a down payment of less than 20% on a conventional loan is typically required to pay PMI, which protects:Finance
- A Washington borrower has a conventional loan with a loan-to-value ratio of 82%. The lender will require:Finance
- A Washington lender approves a loan based on an appraised value of $520,000 at 80% LTV. The purchase price is $535,000. The maximum loan amount is based on:Finance
- A Washington buyer pays $522,500 for a home. The county assesses the property at 90% of purchase price for tax purposes. The millage rate is 12 mills. What is the annual property tax?Real Estate Math
Key Terms to Know
Loan-to-Value Ratio (LTV)
The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Math Concepts
Study This Topic
Practice More Washington Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Washington Quiz →