What is the maximum amount a lender would lend on a house valued at $160,000 if an 85 percent loan-to-value ratio were required?

Question

Quizplus · Accepted Answer

To calculate the maximum amount that the lender would lend, we need to multiply the house value by the loan-to-value ratio:
$160,000 x 0.85 = $136,000
Therefore, the maximum amount the lender would lend on a house valued at $160,000 with an 85 percent loan-to-value ratio is $136,000. Therefore, the correct answer is D.

What Is the Maximum Amount a Lender Would Lend on a House