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

April 26, 2017loan-to-value LTV mean

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

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Loan to Value is a ratio 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 is $90,000 the LTV is 90%. LTV is used to define the maximum loan percentage available for each particular loan program. Lenders have different LTV parameters for different loan programs. Also the LTV available will depend on your personal credit situation. Higher LTV ratios are available for people with higher credit ratings.