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What does LTV (Loan-to-Value) mean?

April 26, 2017loan-to-value LTV mean

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What does LTV (Loan-to-Value) mean?

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Loan-to-Value is a ratio, which is determined by the loan amount divided by the property value. For example, if a home has a property value of $100,000 and the loan amount for that home is $80,000, then the LTV is 80%. LTV is a term that is used to define the maximum loan percentage available for each particular loan program. Mortgage lenders have various LTV parameters for different loan programs. Also, the LTV available to you will depend on your personal credit situation. Higher LTV ratios are usually available for people with higher credit ratings.