Suppose You Plan to Put a 20% Down Payment on a House

Multiple Choice

Suppose you plan to put a 20% down payment on a house and obtain a mortgage loan that is less than the size limit on conforming loans ($417,000) to finance the remainder of the purchase. Based on your understanding of the loan-to-value ratio, what is the maximum price that you could pay for a home with these restrictions in mind?

A) $333,600
B) $500,400
C) $521,250
D) $2,085,000