Answer: High loan-to-value ratio.

## Explanation Banks charge higher interest rates to compensate for higher credit risk. Let's analyze each option: - **A. High FICO score**: A high FICO score indicates good credit history and lower default risk, so banks would charge a *lower* interest rate, not higher. - **B. High loan-to-value ratio**: This means the borrower has less equity in the property. If property values decline, the loan could become underwater (loan balance > property value), increasing default risk. Therefore, banks charge higher interest rates to compensate for this risk. - **C. Low debt-to-assets ratio**: This indicates strong financial position with more assets relative to debt, suggesting lower default risk. Banks would charge a *lower* interest rate. - **D. Low debt-to-income ratio**: This shows the borrower has sufficient income to service debt payments, indicating lower default risk. Banks would charge a *lower* interest rate. Therefore, a high loan-to-value ratio represents higher risk to the lender, justifying a higher interest rate.

Author: LeetQuiz .