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8 January, 21:05

A woman bought a home. The asking price for the home was $585,000; the woman offered $565,000 and the seller accepted. The appraised value of the home is $560,000. The woman plans to pay $94,600 in cash and take out a mortgage for the remainder. What is the LTV for this property

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  1. 8 January, 22:46
    0
    The multiple choices are as follows:

    A: 82%

    B: 83%

    C: 84%

    D: 85%

    The correct option is C, 84%

    Explanation:

    Loan-to-Value ratio (LTV) = loan amount/appraised value of the property

    the price paid for the property was $565,000, out of which the buyer paid $94,600 from her pockets and borrowed the remainder, the remainder that was borrowed is computed thus:

    amount borrowed=sales value-cash

    =$565,000-$94,600=$470,400

    The appraised value of the property is $560,000

    LTV=$470,400/$560,000=0.84

    The property loan to value ratio is 84%
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Home » Business » A woman bought a home. The asking price for the home was $585,000; the woman offered $565,000 and the seller accepted. The appraised value of the home is $560,000. The woman plans to pay $94,600 in cash and take out a mortgage for the remainder.
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