Finance
What does 'loan-to-value ratio' (LTV) measure in a Kansas mortgage transaction?
AThe borrower's debt-to-income ratio
BThe ratio of the loan amount to the appraised value of the property✓ Correct
CThe ratio of interest to principal
DThe lender's profit margin on the loan
Explanation
LTV ratio compares the loan amount to the property's appraised value. A lower LTV indicates less risk to the lender and may result in better loan terms.
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