Question

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%?

Answer 1

Answer:

The LTV ratio 69 %.

Step-by-step explanation:

Since, the LTV( loan to value) ratio is obtained by dividing the borrowed amount by the appraised value of the property.

Given,

The value of property that is purchased = $ 290,000,

Also, the amount of loan or borrowed amount = $ 200,000,

Hence, the LTV ratio = $\frac{200000}{290000}$

$=0.689655172414$

$=68.9655172414\%$

$=69\%$

Third option is correct.

Answer 2

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%