What does William's Loan-to-Value Ratio of 79.9% imply?

A Loan-to-Value (LTV) ratio of 79.9% indicates that William's mortgage loan amount is 79.9% of the appraised value of his property. This financial metric is crucial in assessing the risk level associated with a mortgage loan. A higher LTV ratio may suggest a higher risk for lenders, as it indicates that the borrower has less equity in the property. In this case, William would be financing nearly 80% of the property's value through the mortgage, meaning he has a 20.1% equity stake in the property. Understanding the LTV ratio helps both borrowers and lenders evaluate the overall investment and potential for default.

The other options do not relate directly to the asset value of the property or the mortgage amount. The percentage of income available for housing pertains to affordability, total rent relates to income from rental properties, and disability income is unrelated to property financing.