Real Estate Math

A Wisconsin homeowner's equity in their $350,000 home is $105,000. What is the LTV of their mortgage?

A65%
B70%
C75%✓ Correct
D80%

Explanation

Mortgage balance = $350,000 - $105,000 = $245,000. LTV = $245,000 / $350,000 = 70%. Using the values given ($350,000, $105,000), apply the appropriate formula.. The correct answer is 75%.. This is a common calculation on the Wisconsin real estate exam.

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