Answer :
The purchase price or appraised value, whichever is lower, is the correct option when considering the loan-to-value ratio in mortgage lending
What does an 80% loan-to-value ratio mean?
The loan-to-value ratio means the percentage of the property worth that the borrower could receive as a loan from the financial institution, which means that the remaining percentage after deducting the loan-to-value ratio from 100% would be financed by the borrower, which serves as a way to avoid default.
Ordinarily, the loan-to-value ratio is applied to the lower of the selling price or the appraised value of the property, but note that a selling price to one party is the purchase price to another, hence, option d is correct
Find out more on the loan-to-value ratio on:https://brainly.com/question/4033785
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