Finance
The loan-to-value (LTV) ratio is calculated as:
ALoan amount divided by the purchase price or appraised value, whichever is lower✓ Correct
BPurchase price divided by the loan amount
CDown payment divided by the purchase price
DMonthly payment divided by gross monthly income
Explanation
The LTV ratio is the loan amount divided by the lesser of the purchase price or appraised value, expressed as a percentage. A higher LTV indicates less equity and typically requires private mortgage insurance (PMI).
Related Oklahoma Finance Questions
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