General Mortgage KnowledgeQuestion 126 of 400
A home is worth $400,000. The first mortgage is $280,000 and a second mortgage is $40,000. What is the CLTV?
a.70%
b.80%
c.75%
d.85%
Explanation
CLTV = ($280,000 + $40,000) / $400,000 = $320,000 / $400,000 = 80%. 70% counts only the first mortgage; the others do not match the total liens over value.
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