Multiple Choice
In order to better understand a borrower's probability of default, lenders have a number of tools at their disposal. The ratio that measures the percentage of the price (or value) of a property that is encumbered by the first mortgage is referred to as the:
A) debt coverage ratio (DCR)
B) loan-to-value ratio (LTV)
C) break-even ratio (BER)
D) price-earnings ratio (PE)
Correct Answer:
Verified
Correct Answer:
Verified
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