LTV ratio is the percentage of property value that a lender can finance. Learn how to calculate it, why it matters for home loan eligibility and interest rates, and see examples of LTV ratios. Loan-to-value ( LTV ) is an often used ratio in mortgage lending to determine the amount necessary to put in a down payment and whether a lender will extend credit to a borrower. Most lenders offer... Loan-to-Value ( LTV ) Ratio represents the proportion of an asset’s value that a lender is willing to provide debt financing against, usually expressed as a percentage. Loan-to-Value ( LTV ) Ratio - Meaning, Importance and Calculation The Loan-to-Value or LTV ratio is a crucial metric in the mortgage lending process. It compares a loan amount to the value of a property and how it can impact loan approvals and rate of interest.
