Finance
The loan-to-value (LTV) ratio is calculated as:
ADown payment ÷ Purchase price
BLoan amount ÷ Appraised value (or purchase price, whichever is lower)✓ Correct
CMonthly payment ÷ Gross income
DEquity ÷ Market value
Explanation
LTV = Loan Amount ÷ Appraised Value (or purchase price, whichever is lower). A lower LTV indicates more equity and less lender risk.
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