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Loan-To-Value Ratio Is Used by Lenders as One Factor in Determining

Question 10

Multiple Choice

Loan-to-value ratio is used by lenders as one factor in determining whether to grant a loan. Loan-to-value ration means:


A) the ratio between the fair market value and the appraised value.
B) the ratio between the amount of the loan and the value of the loan to the lender.
C) the ratio between the loan amount and the sales price or the appraised value, whichever is lower.
D) the ratio between the loan amount at 80% and the loan amount at 90% of the sales price.

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