Finance
What is 'loan-to-value ratio' (LTV) and why is it important in Nevada mortgage lending?
ALTV = Monthly Payment ÷ Loan Amount
BLTV = Loan Amount ÷ Appraised Value (or Purchase Price, whichever is lower); it measures the lender's risk exposure — higher LTV means more risk for the lender✓ Correct
CLTV = Property Value ÷ Annual Income
DLTV is only relevant for commercial real estate in Nevada
Explanation
LTV = Loan Amount ÷ Property Value × 100. An $80,000 down payment on a $400,000 home results in an LTV of 75% ($320,000 ÷ $400,000).
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