Definition of Loan to Value Ratio

Q.  Which of the following is the ratio of the loan principal to the appraised value?
- Published on 20 Jul 15

a. Combined Loan To Value: (CLTV) ratio
b. Loan-to-Value Ratio
c. Mortgage Loan
d. Statutory Liquidity Ratio

ANSWER: Loan-to-Value Ratio
 
The loans with LTV ratios higher than 100% are called underwater mortgages.

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