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How much would the bank lend me if I buy a house worth $700,000 and pay a 20% deposit?

Question

How much would the bank lend me if I buy a house worth $700,000 and pay a 20% deposit?

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Solution

To calculate how much the bank would lend you, you first need to determine the amount of your deposit.

Step 1: Calculate the deposit A 20% deposit on a 700,000housewouldbe:700,000 house would be: 700,000 * 20% = $140,000

Step 2: Subtract the deposit from the total price The amount the bank would lend you is the total price of the house minus your deposit. So: 700,000700,000 - 140,000 = $560,000

So, the bank would lend you $560,000.

This problem has been solved

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