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A lender advertises 80% LTV conventional loans. 80% is applied to: Select one: a. Appraised value b. Selling price c. The buyers income d. The purchase price or appraised value, whichever is lower

Sagot :

The purchase price or appraised value, whichever is lower, is the correct option when considering the loan-to-value ratio in mortgage lending

What does an 80% loan-to-value ratio mean?

The loan-to-value ratio means the percentage of the property worth that the borrower could receive as a loan from the financial institution, which means that the remaining percentage after deducting the loan-to-value ratio from 100% would be financed by the borrower, which serves as a way to avoid default.

Ordinarily, the loan-to-value ratio is applied to the lower of the selling price or the appraised value of the property, but note that a selling price to one party  is the purchase price to another, hence, option d is correct

Find out more on the loan-to-value ratio on:https://brainly.com/question/4033785

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