A(n)____________ ratio specifies the maximum percentage of the value of a property that a lender is willing to loan.
A)affordability
B)loan-to-value
C)rent
D)mortgage points to closing costs

Question

A(n)____________ ratio specifies the maximum percentage of the value of a property that a lender is willing to loan. ​
A)affordability
B)loan-to-value
C)rent
D)mortgage points to closing costs

Quizplus · Accepted Answer

A loan-to-value ratio specifies the maximum percentage of a property's value that a lender is willing to lend to a borrower. This ratio helps lenders determine the risk they are taking on by lending a certain amount of money to a borrower. A higher loan-to-value ratio means higher risk for the lender.

A(n)____________ Ratio Specifies the Maximum Percentage of the Value of a Property