The Loan-To-Value Ratio on a Mortgage Is Defined as The

question 12

Multiple Choice

The loan-to-value ratio on a mortgage is defined as the:

• A) loan amount as a percentage of sales price
• B) loan amount as a percentage of assessed value
• C) loan amount as a percentage of appraised value
• D) monthly payments as a percentage of the face amount of the loan

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Definitions:

Cash Inflows

Money or other forms of capital coming into a business, often from sales, investments, or financing activities.

Required Rate

The minimum annual percentage return on investment demanded by investors or lenders.

Payback Period

The duration required for an investment to produce income or cash flows equal to the investment's initial cost.

After-tax Cash Flows

The net cash that remains after all tax-related expenses are deducted, often considered in investment analysis to gauge true profitability.