Finance

What does 'LTV' stand for and why is it important in South Carolina mortgage lending?

ALoan Term Value; determines the loan length
BLoan-to-Value ratio; measures risk by comparing loan amount to property value✓ Correct
CLong-Term Valuation; used in commercial appraisals
DLender Transfer Value; used in loan assumptions

Explanation

LTV (Loan-to-Value) ratio = Loan Amount ÷ Appraised Value. It measures the lender's risk.

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