If a property sold for $200,000 and appraised at $180,000, what is the loan-to-value ratio for a $150,000 loan?

To determine the loan-to-value (LTV) ratio, you need to compare the amount of the loan to the value of the property. The LTV ratio is calculated using the formula:

LTV = (Loan Amount / Appraised Value) x 100%

In this scenario, the property has been appraised at $180,000, and the amount of the loan is $150,000. Plugging these numbers into the formula gives:

LTV = ($150,000 / $180,000) x 100%

Calculating this results in:

LTV = 0.8333 x 100% = 83.33%

This rounds to approximately 83.3%. The LTV ratio of 83.3% indicates that the loan amount makes up 83.3% of the appraised value of the property, which is significant in assessing the risk associated with the loan. A higher LTV ratio can indicate greater risk to lenders since it reflects a greater proportion of the property being financed relative to its value.

In this case, the choice of 83.3% accurately represents the correct LTV calculation based on the given loan amount and appraised value.