Real Estate Math

A West Virginia property is appraised at $175,000. The buyer obtains an 80% LTV loan. What is the loan amount?

A$140,000✓ Correct
B$145,000
C$150,000
D$135,000

Explanation

Loan amount = $175,000 x 0.80 = $140,000. At 80% LTV, the buyer finances $140,000 and makes a $35,000 down payment (20%).

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