Finance
In South Dakota, what does 'loan-to-value ratio' (LTV) measure?
AThe ratio of interest to principal in a mortgage payment
BThe loan amount divided by the appraised value of the property✓ Correct
CThe property value compared to neighboring properties
DThe ratio of the down payment to closing costs
Explanation
LTV = Loan Amount ÷ Appraised Value. Lenders use this ratio to assess risk; a lower LTV typically results in better loan terms for the borrower.
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