Finance
The 'loan-to-value ratio' (LTV) is calculated as:
ALoan amount divided by the property's appraised value✓ Correct
BProperty value divided by the loan amount
CDown payment divided by the purchase price
DMonthly payment divided by gross income
Explanation
LTV = Loan Amount ÷ Appraised Value (or Purchase Price, whichever is less). For example, a $320,000 loan on a $400,000 property has an LTV of 80%.
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