What is Loan to Value (LTV)?
A. LTV is the size of your loan in proportion to the value of your home. For example, if you are buying a home for $100,000, and you make a down payment of $10,000, then your loan amount would be $90,000. Your LTV would be 90% (the loan is 90% of the value). It is important to know that lenders will always use the lesser of the appraised value or the purchase price for the value. If you refinance, then the appraised value is used.
LTV is a calculation that shows the amount you borrow as a percentage of the book value of the vehicle* you are purchasing. For example, if you borrow $15,000 on a vehicle with a value of $13,000, the LTV would be 115.3% ($15,000 divided by $13,000). The vehicles on this list provide lower fuel efficiency. Therefore, a lower LTV amount may be required compared to other vehicles.
