The purchase price of the house you are buying is $140,000.A loan-to-value ratio of 80 percent will require a down payment of ____________.

Question

The purchase price of the house you are buying is $140,000.A loan-to-value ratio of 80 percent will require a down payment of ____________. ​

Quizplus · Accepted Answer

To find the down payment required for a loan-to-value ratio of 80%, we need to multiply the purchase price by 0.20 (since the borrower is responsible for covering the remaining 20% of the cost of the home).

Down Payment = Purchase Price x 0.20
Down Payment = $140,000 x 0.20
Down Payment = $28,000

Therefore, choice B is the correct answer.

The Purchase Price of the House You Are Buying Is