Finance
The loan-to-value (LTV) ratio on a Vermont mortgage is calculated as:
APurchase price divided by income
BLoan amount divided by appraised value, expressed as a percentage✓ Correct
CMonthly payment divided by annual income
DInterest rate divided by loan term
Explanation
LTV = (Loan Amount / Appraised Value) x 100. A higher LTV indicates a smaller down payment and greater lender risk, which often triggers PMI requirements.
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