General Mortgage KnowledgeQuestion 158 of 400
A property appraises at $250,000. The borrower has a first mortgage of $150,000 and wants a second mortgage of $37,500. What is the resulting CLTV?
a.60%
b.75%
c.70%
d.80%
Explanation
CLTV = ($150,000 + $37,500) / $250,000 = $187,500 / $250,000 = 75%. 60% counts only the first mortgage; the others do not match.
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