Loan-to-Value Ratio (LTV)
Lending & MortgagesThe ratio of a mortgage amount to the property's appraised value, used to assess lending risk.
Example
Example: Suppose you take out a $300,000 30-year fixed mortgage at 6.5%. Understanding loan-to-value ratio (ltv) helps you see how your monthly payment of approximately $1,896 is structured — and how this concept affects your total cost over the life of the loan. Use our mortgage calculator to see how loan-to-value ratio (ltv) impacts your specific situation.