Finance
A buyer's loan-to-value (LTV) ratio is 90%. This means:
AThe buyer made a 90% down payment
BThe loan amount is 90% of the property's appraised value✓ Correct
CThe property appreciated 90% in value
DThe buyer owes 90% of the original purchase price
Explanation
LTV = Loan amount ÷ Appraised value. An LTV of 90% means the buyer financed 90% of the appraised value, putting 10% down.
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