What does LTV stand for?

What does LTV stand for? LTV stands for Loan-to-Value. Loan-to-Value is a term used in mortgage lending to determine loan balance as a percentage of the sales price. For example, if a buyer is putting down 20%, the LTV is 80%.

How to calculate my LTV?

How to calculate Loan-to-Value (LTV) To calculate LTV, you would divide the mortgage amount over the property value. If you are purchasing a home, the property value would be the purchasing price of the home, while the mortgage amount would be the purchasing price subtracted by the amount of your down payment.

What is LTV and how is it used?

The loan-to-value ( LTV) ratio is a financial term used by lenders to express the ratio of a loan to the value of an asset purchased. In Real estate, the term is commonly used by banks and building societies to represent the ratio of the first mortgage line as a percentage of the total appraised value of real property.