Real Estate MathQuestion 108 of 120
A lender requires a loan-to-value (LTV) ratio of 80 percent on a home appraised at $300,000. What is the maximum loan amount?
a.$60,000
b.$375,000
c.$24,000
d.$240,000
Explanation
The maximum loan equals value times the LTV ratio: $300,000 x 0.80 = $240,000. The borrower would need to cover the remaining $60,000 as a down payment. LTV compares the loan amount to the property's value.
Practice all 120 questions free — no signup required.
Related questions on this topic
- A home sells for $400,000 with a total commission rate of 6 percent. What is the total commission?
- A property sells for $250,000 with a 6 percent commission. If the listing and selling brokerages split the commission equally, how much does each brokerage receive?
- A buyer makes a 20 percent down payment on a $350,000 home. How much is the down payment?
- Annual property taxes are $3,600. Using a 360-day year, what is the daily proration amount?
- A parcel of land measures 200 feet by 300 feet. What is its area in square feet?
- One acre equals 43,560 square feet. How many acres is a lot containing 87,120 square feet?
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against Florida Real Estate Sales Associate Licensing Exam · How we review