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What is LTV (Loan-to-Value Ratio) on mortgage loans?

April 26, 2017loan-to-value LTV mortgage loans ratio

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What is LTV (Loan-to-Value Ratio) on mortgage loans?

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The LTV (Loan-to-Value Ratio) on mortgage loans is the ratio between the amount of the first mortgage and the appraised property value. For example, if you are buying a house worth $350,000 and take out $300,000 as a first mortgage to purchase the property, the loan-to-value ratio will be 300,000/350,000 which is equal to 85.7% LTV.