The purchase price of the house you are buying is $140,000. A loan-to-value ratio of 80% will require a down payment of:
A) $34,000.
B) $28,000.
C) $108,000.
D) $112,000.
E) $20,000.

Question

Quizplus · Accepted Answer

A loan-to-value ratio of 80% means that the borrower will be borrowing 80% of the purchase price of the home. Therefore, the down payment will be 20% of the purchase price. 20% of $140,000 is $28,000.

The Purchase Price of the House You Are Buying Is