Suppose homeowners own a home that has an appraised value of $200,000. The homeowners have a mortgage loan outstanding on the home of $180,000. The loan to value ratio is closest to:
A) 0.9.
B) 1.0.
C) 1.05

Question

Quizplus · Accepted Answer

The loan to value ratio (LTV) is calculated by dividing the loan amount by the appraised value of the property. In this case, $180,000 / $200,000 = 0.9.

Suppose Homeowners Own a Home That Has an Appraised Value