If Jessica purchases a property for $290,000, and borrows $200,000 she is said to have a LTV ratio of? 100%? 76%? 69%? 31%?

Question

Mathematics

Meghan Buchanan

27 June, 00:25

If Jessica purchases a property for $290,000, and borrows $200,000 she is said to have a LTV ratio of? 100%? 76%? 69%? 31%?

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Answers (1)

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Dillan Rogers · Answer 1

The loan-to-value ratio (LTV) is the ratio fo the first mortgage amount to the appraised value of the property. Here, that is

LTV = ($200,000) / ($290,000)

LTV = 0.689655

LTV ≈ 69%