General Mortgage KnowledgeQuestion 138 of 400
A home is valued at $600,000 with a first mortgage of $420,000 and a home equity loan of $60,000. What is the CLTV?
a.70%
b.80%
c.75%
d.90%
Explanation
CLTV = ($420,000 + $60,000) / $600,000 = $480,000 / $600,000 = 80%. 70% counts only the first mortgage; the others do not match.
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