What is the original LTV of a mortgage loan?
What will be an ideal response?
The original LTV of a mortgage loan is the LTV at the time of origination. The LTV is the ratio of the amount of the loan to the market (or appraised) value of the property. The lower this ratio, the more protection the lender has if the applicant defaults and the property must be repossessed and sold.
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When Hamburger Helper introduced its Oven Varieties, it gave special offers to supermarkets to purchase the new product and supplemented these offers with consumer advertising. Hamburger Helper's primary objective is to
A. facilitate reseller support. B. reduce sales fluctuations. C. combat competitive promotional efforts. D. encourage product trial. E. retain loyal customers.
Grades for a statistics exam for a certain class follow the normal probability distribution with a mean of 82 and a standard deviation of 12 . What percentage of the students in the class had a grade 81 or more?
Onico Inc., a luxury car company, sells the same cars and offers the same superior services in both its home country and foreign markets. The market it operates in faces low pressures for both local responsiveness and cost reductions. Which of the following strategies within the integration-responsiveness framework does Onico Inc. most likely pursue?
A. A multidomestic strategy B. A transnational strategy C. A global-standardization strategy D. An international strategy
Suppose Carol's stock price is currently $20. In the next six months it will either fall to $10 or rise to $40. What is the current value of a six-month call option with an exercise price of $15? The six-month risk-free interest rate is 5 percent per six-month period. (Use the replicating portfolio method.)
A. $13.33 B. $16.88 C. $10.28 D. $8.73