Be a Giving Heart!
We’ll donate $25,000 to one lucky charity on Giving Hearts Day, plus surprise two more $10,000 winners. Nominate your favorite charity now >

Loan-to-Value (LTV) Ratio

Definition

The ratio of the loan principal (amount borrowed) to the appraised value (selling price). For example, on a $100,000 home with a mortgage loan principal of $80,000, the LTV is 80%. The LTV will affect programs available to the borrower. Generally, the lower the LTV, the more favorable the program terms offered by lenders.