General Mortgage KnowledgeQuestion 98 of 400
A property is worth $500,000. It has a first mortgage of $350,000 and a HELOC balance of $50,000. What is the combined loan-to-value (CLTV)?
a.70%
b.80%
c.90%
d.75%
Explanation
CLTV = (all liens) / value = ($350,000 + $50,000) / $500,000 = 80%. 70% ignores the HELOC. 90% and 75% do not match the summed liens over value.
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