Question

What is the loan-to-value ratio if the loan amount is $93,750, the appraised value is $125,000, and the sales price is $130,000?

a. 75%
b. 80%
c. 90%
d. 95%

Answer 1

The loan-to-value ratio is 75%.

Step-by-step explanation:

The loan-to-value ratio (LTV) can be calculated by dividing the loan amount by the appraised value and multiplying by 100. In this case, the loan amount is $93,750 and the appraised value is $125,000.

LTV = (Loan Amount / Appraised Value) * 100

LTV = ($93,750 / $125,000) * 100

LTV = 0.75 * 100 = 75%

Therefore, the loan-to-value ratio is 75%.