If the maximum loan-to-value ratio that a lender will accept on a house costing $100,000 is 80 percent,then the borrower must make a down payment of at least _____
A)$100,000.
B)$80,000.
C)$180,000.
D)$20,000.
E)$120,000.

Question

Quizplus · Accepted Answer

If the maximum loan-to-value ratio is 80%, it means that the lender will provide a loan of up to 80% of the property's value, which is $80,000 in this case. Therefore, the borrower must make a down payment of the remaining amount, which is $100,000 - $80,000 = $20,000. Thus, the correct answer is option D, $20,000.

If the Maximum Loan-To-Value Ratio That a Lender Will Accept