What is a Loan To Value Ratio (LTV)?
A ratio determined by dividing the sales price or appraised value into the loan amount, expressed as a percentage.
For example, with a sales price of $100,000 and a mortgage loan of $80,000, your loan to value ratio would be 80%.
Loans with an LTV over 80% may require Private Mortgage Insurance.
Additional Mortgage FAQs
- How does an escrow account work?
- What are Discount Points (or Points)?
- What are the common fees through the mortgage process?
- What are the steps in the Mortgage Process?
- What is a Loan To Value Ratio (LTV)?
- What is a Rate Lock or Lock In?
- What is a Truth-in-Lending Disclosure and why do I receive it?
- What is Private Mortgage Insurance (PMI)?
- What is the difference between a Mortgage Broker & Mortgage Banker?
- What is the difference between Interest Rate & APR?