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What is LTV?


LTV is Loan To Value.  
An acronym often encountered in the home buying or refinancing process, LTV describes loan amount as a percentage of the purchase price or value of property. For example, an $80,000 loan on a $100,000 property equals an 80% LTV.

You can also think of LTV as the inverse of your down payment. If you put 10% down, your LTV will be 90%. The LTV may be slightly higher if costs such as upfront mortgage insurance or other funding fees are added to the loan amount.

If you have questions about LTV or mortgage financing, please give us a call. We’re happy to help.  Contact my team today and consider reading the other posts in this current blog series: Loan Mechanics: The Inner Workings of a Mortgage

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