Down Payment from LTV
down payment = price × (1 − LTV)
- price — Purchase price
- LTV — Loan-to-value ratio as a decimal
Worked example: Price is $340,000 with a 90% LTV loan.
- 1 − 0.90 = 0.10
- $340,000 × 0.10 = $34,000
$34,000 down payment
Loans & LTV formula
Down Payment from LTV Formula
down payment = price × (1 − LTV)
Other Loans & LTV formulas
Down Payment from LTV practice questions
Every Freehold question shows why the right answer is right — and cites its source.
A $150,000 interest-only loan carries a 6% annual interest rate. What is the monthly interest payment?
- $625
- $700
- $750
- $900
Show answer & explanation
$750 — Annual interest is $150,000 × 0.06 = $9,000. Dividing by 12 months gives a monthly interest payment of $750.
Source: PSI National Real Estate Exam Content Outline §11 Real Estate Calculations
A home is priced at $260,000 with an 85% LTV loan. What is the required down payment?
- $221,000
- $26,000
- $39,000
- $52,000
Show answer & explanation
$39,000 — The down payment covers the portion the loan doesn't: 1 − 85% = 15%, so $260,000 × 15% = $39,000.
Source: PSI National Real Estate Exam Content Outline §11 Real Estate Calculations
A buyer makes a $54,000 down payment on a $360,000 home. What percentage of the price is the down payment?
- 15%
- 30%
- 17.6%
- 85%
Show answer & explanation
15% — Divide the down payment by the price: $54,000 ÷ $360,000 = 15%.
Source: PSI National Real Estate Exam Content Outline §11 Real Estate Calculations
All 14 formulas in one place: Real estate math reference
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