If you buy a $500,000 house with $50,000 down, the leverage ratio is:

Name: If you buy a $500,000 house with $50,000 down, the leverage ratio is:
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Quizplus · Accepted Answer

The leverage ratio is calculated as the total value of the property divided by the equity invested. In this case, it's $500,000 / $50,000 = 10. However, the leverage ratio is often expressed as the total value of the property divided by the loan amount, which is $450,000. Therefore, $450,000 / $50,000 = 9.

If You Buy a $500,000 House with $50,000 Down, the Leverage