Finance

A Wisconsin borrower has a combined loan-to-value (CLTV) ratio of 90% with a first mortgage of $160,000 and a second mortgage of $20,000. What is the property value?

A$180,000
B$196,000
C$200,000✓ Correct
D$210,000

Explanation

CLTV = (First + Second) ÷ Value. $180,000 ÷ Value = 0.90. Value = $180,000 ÷ 0.90 = $200,000. To solve this, multiply the relevant values: $160,000 and $20,000 at 90%.. The correct answer is $200,000.. This is a common calculation on the Wisconsin real estate exam.

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