Finance
The loan-to-value (LTV) ratio is calculated as:
AAppraised value divided by loan amount
BLoan amount divided by appraised value, expressed as a percentage✓ Correct
CPurchase price divided by down payment
DMonthly payment divided by gross income
Explanation
LTV = (Loan Amount ÷ Appraised Value) × 100. A $180,000 loan on a $200,000 property has an LTV of 90%.
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