Real Estate Math

A Wisconsin buyer obtains a 90% LTV mortgage on a $220,000 home. How much is the down payment?

A$11,000
B$22,000✓ Correct
C$33,000
D$44,000

Explanation

Down payment = $220,000 × (100% - 90%) = $220,000 × 10% = $22,000. To solve this, multiply the relevant values: $220,000 at 90%.. The correct answer is $22,000.. This is a common calculation on the Wisconsin real estate exam.

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