Answer:
95.38%
Explanation:
The loan-to-value ratio compares the mortgage amount to the value of the home purchased using the mortgage loan.
Mortgage amount=purchase price of the home-down payment
purchase price is $325,000
down payment is $15,000
mortgage amount=$325,000-$15,000=$310,000
loan-to-value ratio=mortgage amount/home value=$310,000/$325,000=95.38%
The LTV rounded to two decimal places is 95.38%
This implies that 95% of the home value is financed by mortgage while 5% was financed by the home owner
