General Mortgage KnowledgeQuestion 125 of 400
A home appraises at $250,000 and the borrower takes a loan of $187,500. What is the LTV?
a.75%
b.80%
c.70%
d.85%
Explanation
LTV = $187,500 / $250,000 = 75%. The other percentages do not equal the loan divided by the appraised value.
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