Real Estate MathInterestMEDIUM
If a bank makes a 90% loan on a house valued at $88,500, how much cash is required at closing if the buyer already paid $4,000 in earnest money?
Correct Answer
B) $4,850.00
Down payment = $88,500 × 10% = $8,850. Cash needed = $8,850 - $4,000 = $4,850
Answer Options
A
$4,000.00B
$4,850.00C
$8,450.00D
$8,850.00Audio Lesson3 min
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Related Topics & Key Terms
Related Topics:
loan-to-value-ratiosearnest-money-depositsdown-payment-calculations
Key Terms:
earnest money creditloan-to-value ratiodown payment calculationclosing costs90% LTV loan
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