Answer:
$2,430
Explanation:
Given that,
Purchase price = $108,000
Maximum LTV = 97.75%
LTV refers to the maximum amount that a lender will considering to loan out which is the percentage of the value of the property.
Therefore, the minimum down payment that a Connie must make for taking a loan is as follows:
= Purchase price × (1 - Maximum LTV)
= $108,000 × (1 - 97.75%)
= $108,000 × 0.0225
= $2,430
