Question

The percentage of a property's total value that a financial institution can or may lend to a borrower. An 80% ratio means the financial institution may lend 80% of the property's appraised value to a borrower.

A) The borrower's credit score
B) The interest rate on the loan
C) The percentage of property's value that can be borrowed
D) The total cost of the loan

Answer 1

The percentage of property's value that can be borrowed.

Step-by-step explanation:

The correct answer is C) The percentage of property's value that can be borrowed.

In the question, it states that the percentage that a financial institution can lend to a borrower is the percentage of the property's total value. For example, if the ratio is 80%, it means that the financial institution may lend up to 80% of the property's appraised value.

This percentage represents the loan-to-value ratio (LTV) and is an important factor in determining the amount of money that a borrower can borrow.