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

Loan-to-Value Ratio (LTV) Definition

A statement of the loan total compared to the value of the property being purchased. If the value of the property is $200,000, and the loan total is $100,000, the LTV is 50%. Lenders prefer to keep LTV low and often avoid 100% LTV, although these loans are available.


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