Final answer:
The Loan-to-Value (LTV) ratio for a loan amount of $139,500, an appraised value of $164,117, and a sales price of $155,000 is approximately 90%, meaning the loan is for 90% of the property's sales price.
Step-by-step explanation:
The Loan-to-Value (LTV) ratio is a financial term used by lenders to express the ratio of a loan to the value of an asset purchased. To calculate the LTV ratio, you divide the loan amount by the appraised value or the sales price of the property, whichever is lower, and then multiply the result by 100 to get a percentage. In this case, the loan amount is $139,500, and we have both an appraised value of $164,117 and a sales price of $155,000. Since lenders typically use the lower value to determine LTV, we use the sales price of $155,000.
LTV = \((\frac{$139,500}{$155,000}) \times 100\%\)
The calculation gives us an LTV of approximately 90%. This indicates that the loan is for 90% of the property's sales price, which is a common LTV ratio for many home loans.