LTV

LTV, which is short for loan to value, is a lending risk assessment ratio that is examined by lenders before approving home mortgages. A high LTV ratio is …

LTV, which is short for loan to value, is a lending risk assessment ratio that is examined by lenders before approving home mortgages. A high LTV ratio is seen as high risk thus accepting a mortgage with a high LTV will ultimately cost the borrower more to borrow.

Loan to value is calculated by taking the loan amount and dividing it by the value of the home. The home value is often determined by an appraiser.

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