Real Estate MathQuestion 119 of 120
A buyer obtains a loan with an 80% loan-to-value ratio on a $325,000 purchase. How much is the loan amount?
a.$65,000
b.$162,500
c.$32,500
d.$260,000
Explanation
Multiply the price by the LTV: $325,000 x 0.80 = $260,000. The remaining 20%, or $65,000, would be the down payment.
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