If the maximum loan-to-value ratio that a lender will accept on a $100,000 home is 80 percent,then the borrower must make a down payment of at least
A)$100,000.
B)$80,000.
C)$50,000.
D)$20,000.
E)none of these.

Question

Quizplus · Accepted Answer

The maximum loan amount is 80% of $100,000, which is $80,000. Therefore, the borrower must make a down payment of $100,000 - $80,000 = $20,000.

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