Question

If a lender agrees to make a loan based on an 80% LTV, what is the amount of the loan if the property appraises for $314,500 and the sales price is $316,900?

A)$251,600
B)$183,200
C)$291,300
D)$292,900

Answer 1

The amount of the loan based on an 80% LTV is $251,600.

Step-by-step explanation:

To determine the loan amount based on an 80% loan-to-value (LTV) ratio, we need to calculate 80% of the appraised value of the property.

The appraised value of the property is $314,500, so we need to find 80% of $314,500.

80% of $314,500 = $251,600

Therefore, the amount of the loan is $251,600.