Real Estate & Mortgages

Basic

Loan-to-Value Ratio

Loan size as a percentage of property value.

Formula

LTV = \frac{L}{V} \times 100

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Variables

LTVLoan-to-value (%)

LLoan amount

VProperty value

Example

$240k loan on $300k home: LTV = 80%

Did You Know?

Lenders often require mortgage insurance above 80% LTV — the borrower has less 'skin in the game'.

real estate ltv mortgage

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