Finance
In Hawaii, what does the term 'loan-to-value ratio' (LTV) represent?
AA. The ratio of the interest rate to the loan term
BB. The ratio of the loan amount to the appraised value of the property✓ Correct
CC. The ratio of monthly payment to gross income
DD. The ratio of down payment to loan amount
Explanation
LTV is calculated by dividing the loan amount by the appraised value. An 80% LTV means the loan is 80% of the property's value.
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