Skip to content
Loan

LTV

Also known as: Loan to Value Ratio, Financing Ratio

Loan to Value Ratio - Percentage of asset value that the lender will finance through the loan.

Detailed Explanation

LTV (Loan to Value Ratio) is the ratio of loan amount to the appraised value of the asset being purchased. Higher LTV means lower down payment but potentially higher interest rates and mandatory insurance. For home loans, LTV typically ranges from 70-90% depending on loan amount and borrower profile.