Real Estate MathLoan_and_interest_calculationsEASY
A property is appraised at $400,000 and the purchase price is $380,000. If the lender uses the lower value for LTV purposes and offers 90% LTV, what is the maximum loan amount?
Correct Answer
D) $342,000
Step 1: The lender uses the lower of purchase price or appraised value = $380,000. Step 2: Maximum loan = $380,000 × 90% = $342,000.
Answer Options
A
$360,000B
$400,000C
$380,000D
$342,000Why This Is the Correct Answer
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Why the Other Options Are Wrong
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Deep Analysis of This Real Estate Math Question
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Background Knowledge for Real Estate Math
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Real World Application in Real Estate Math
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Related Topics & Key Terms
Key Terms:
loan_and_interest_calculationsltvloan_amountappraisal
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