Loan-To-Value (LTV) Ratio

Funding, Glossary

A financial term used mainly by lenders to express the ratio of a loan to the value of the asset purchased using the loaned money or to the value of the asset serving as collateral on the loan. A borrower taking out a $65,000 loan to purchase a $100,000 property has, in its simplest form, an LTV of 65%.

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