Finance
A Colorado property's 'loan-to-value ratio' of 75% means:
AThe borrower has a 75% chance of loan approval
BThe loan amount is 75% of the property's appraised value✓ Correct
CThe interest rate is 75 basis points above prime
D75% of the monthly payment goes toward principal
Explanation
LTV of 75% means the loan is 75% of the property's appraised value, indicating the borrower made a 25% down payment. LTV = Loan Amount ÷ Property Value × 100.
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