Find the loan-to-value ratio for a home appraised at $583,620.00 that the buyer will purchase for $585,000.00. The buyer plans to make a down payment of $175,000.00.
To find the loan-to-value (LTV) ratio for this scenario, you need to calculate the loan amount and divide it by the appraised value of the home.
The loan amount is the purchase price minus the down payment. In this case, the loan amount is $585,000 - $175,000 = $410,000.
Now, calculate the LTV ratio by dividing the loan amount by the appraised value, and multiplying the result by 100 to get a percentage:
LTV ratio = (loan amount / appraised value) * 100
LTV ratio = ($410,000 / $583,620) * 100
LTV ratio ≈ 70.26%
Therefore, the loan-to-value ratio for this home purchase is approximately 70.26%.