Calculations of Mortgage Payments, Income, and Debt Ratios Flashcards
1
Q
What does LTV stand for?
A
Loan-to-value ratio
2
Q
What does an LTV do?
A
It describes the relationship b/t a property’s purchase price and its loan amount
3
Q
What does it mean when the LTV ratio is high?
A
A high LTV ratio = the greater the loan in relation to the purchase price and the lesser the borrower’s equity in the property
