What amount will the buyer's lender use to calculate the loan-to-value ratio in the case of Jeffrey's house sale?

In real estate transactions, the loan-to-value (LTV) ratio is a critical financial metric used by lenders to determine the risk associated with a loan. It is calculated by taking the loan amount a borrower requests and dividing it by the appraised value or the purchase price of the property, whichever is less.

In this scenario, the buyer's lender will focus on the purchase price of the property, which is commonly used in LTV calculations. The selection of $300,000 indicates that this amount represents either the purchase price of Jeffrey's house or the appraised value determined by the lender. The lender wants to ensure that the borrower is not over-leveraging the property compared to its actual worth.

As a result, the loan-to-value ratio will be calculated using the amount of $300,000, reflecting the true price point that the buyer can expect to finance. This helps the lender assess their risk in lending money relative to the secured asset's value. The other amounts provided do not correspond accurately to the price-purchasing dynamics that determine the LTV calculation in this context.