Final answer:
High Loan-to-Value (LTV) ratio loans typically come with higher interest rates and private mortgage insurance due to the increased risk they pose to lenders.
Step-by-step explanation:
High Loan-to-Value (LTV) ratio loans generally are accompanied by higher interest rates, private mortgage insurance (PMI), or both. These loans are perceived as riskier by lenders, as they have less equity at stake and a higher chance of default, thus requiring additional protection against potential losses. This risk is compounded if the loan is of the subprime variety, which often involves minimal down payments, less scrutiny of the borrower's income, and initial low payments that increase significantly after the first few years.