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Mortgages & Loans

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  4. What is a mortgage loan to value ratio ?

What is a mortgage loan to value ratio ?

The mortgage loan to value ratio is the ratio of the mortgage loan amount to the property's appraised value or sales price, whichever is less. An example of this is if a residence is sold for $200,000 and the mortgage amount is $150,000, the house has a 75 percent loan to value ratio.

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