FinanceQuestion 86 of 120
A buyer purchases a home for $300,000 and makes a $60,000 down payment. What is the loan-to-value ratio?
a.70%
b.80%
c.20%
d.120%
Explanation
The loan amount is $300,000 minus $60,000, or $240,000, and LTV equals $240,000 divided by $300,000, which is 0.80 or 80%. The $60,000 down payment represents 20% equity.
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