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(LTV) Loan to Value


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(LTV) Loan to Value

"Loan to value" is a percentage determined by dividing the loan amount by the value of a home. It can play a role in determining the mortgage interest rate and whether or not the borrower qualifies for a loan.

Example 1 of LTV: If your home is appraised for $200,000 and your mortgage is $160,000, then your LTV is 80%.

Example 2 of LTV: If the property's purchase price is $180,000 and you provide a down payment of 5% or $9,000, your LTV is 95%.

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