General Mortgage KnowledgeQuestion 156 of 400
Loan-to-value (LTV) is calculated as:
a.Income divided by debt
b.Value minus loan
c.Down payment divided by loan
d.Loan amount divided by the lesser of purchase price or appraised value
Explanation
LTV = loan amount / (the lesser of the sales price or appraised value), expressed as a percentage. The other formulas describe DTI or unrelated relationships.
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