Loan-to-Value Ratio (LTV)

Advanced 🏠 Real Estate

Definition

The loan amount as a percentage of property value, essentially how much risk the lender is taking on your deal.

Example Usage

The LTV was 80%, meaning we put down 20%.

Origin

Lending and appraisal terminology standardized in mortgage lending

Fun Fact

LTV over 80% triggers PMI, while LTV over 100% (underwater mortgages) is when you owe more than it's worth.

Source: Mortgage Lending Standards

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