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13 June, 05:41

You sell a home for a client where the down payment was $30,000 with a loan of $125,000 at 3.7% interest with a term of 30 years fixed. The mortgagor's monthly payment is $1,219. What is the loan to value ratio?

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  1. 13 June, 06:23
    0
    76%

    Explanation:

    The computation of loan to value ratio is shown below:

    Loan to value ratio equals to

    = (Loan amount - down payment) : (Down payment)

    = ($125,000 - $30,000) : ($125,000)

    = ($95,000) : ($125,000)

    = 76%

    Simply we applied the above formula and the other details are not relevant i. e monthly payment, interest rate and tenure. Hence, ignored it
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