PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM GLOSSARY
Loan-to-value ratio, or LTV, expresses the loan amount as a percentage of the lender's value base.
Financing
Mortgage finance
Define, distinguish, apply, retrieve
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PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDEBuild the complete exam definition
Learn the rule, separate it from the nearest distractor, then apply it to a Georgia fact pattern.
What does Loan-to-value ratio mean?
Loan-to-value ratio, or LTV, expresses the loan amount as a percentage of the lender's value base. In basic exam problems, divide the loan by the stated property value and multiply by 100.
How do you separate the nearest exam answer?
LTV measures the financed share. The down-payment percentage measures the buyer's initial cash equity share when no other financing is present.
What changes or stays the same in Georgia?
This is a national financing calculation on the Georgia exam. Georgia's security-deed terminology does not change the LTV formula.
A buyer borrows $270,000 on a $300,000 property. The LTV is $270,000 ÷ $300,000 = 90 percent.
Do not divide the down payment by the price or use the monthly payment as the numerator.
PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDERetrieve the rule under exam conditions
Answer before reading the explanation. Then explain why every distractor belongs to a different term.
A buyer agrees to pay $400,000 for a home that appraises at $380,000 and borrows $342,000. The lender bases LTV on the lower of the price or the appraised value. What is the LTV?
- A
85.5 percent
- B
14.5 percent
- C
10 percent
- D
90 percent
LTV is the loan divided by the lender's value base. The lower value is the $380,000 appraisal, and $342,000 divided by $380,000 equals 0.90, or 90 percent. The 85.5 percent answer divides by the price, which this lender does not use.
Mark each box only when you can perform the skill without looking.
I can define the term in one precise sentence.
I can separate it from the closest look-alike.
I can explain the Georgia rule or confirm that the national rule applies.
I can answer the practice check and explain every option.
PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDEConnect the term to the wider exam
Use these relationships to move from isolated recall to a connected exam model.
Financing complete lesson
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